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PORTFOLIO BUDGET STATEMENTS 2010–11 BUDGET RELATED PAPER NO. 1.8

FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMS BY AGENCY

© Commonwealth of Australia 2010

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MINISTER FOR FAMILIES, HOUSING, COMMUNITY

SERVICES AND INDIGENOUS AFFAIRSPARLIAMENT HOUSE

CANBERRA 2600

President of the Senate Australian Senate Parliament House CANBERRA ACT 2600 Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2010–11 Budget for the Families, Housing, Community Services and Indigenous Affairs portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

The Hon. Jenny Macklin, MP

Abbreviations and conventions The following notation may be used:

NEC/nec not elsewhere classified nil .. not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million $b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

EnquiriesShould you have any enquiries regarding this publication please contact the Branch Manager, Budget Development Branch, in the Department of Families, Housing, Community Services and Indigenous Affairs on (02) 6244 5571.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

User Guide

USER GUIDE

The purpose of the 2010–11 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2010–11. In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio Overview ........................................................................................................ 1Families, Housing, Community Services and Indigenous Affairs Portfolio Overview ........................................................................................................... 3

Agency Resources and Planned Performance ........................................................11Department of Families, Housing, Community Services and Indigenous Affairs ............................................................................................................................13 Equal Opportunity for Women in the Workplace Agency............................................159Aboriginal Hostels Limited...........................................................................................183 Indigenous Business Australia ....................................................................................209 Indigenous Land Corporation......................................................................................245 Torres Strait Regional Authority ..................................................................................273

Glossary .....................................................................................................................301

Index ...........................................................................................................................309

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PORTFOLIO OVERVIEW

Portfolio Overview

FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS PORTFOLIO OVERVIEW

MINISTERS AND PORTFOLIO RESPONSIBILITIES

The Ministers and Parliamentary Secretaries responsible for the portfolio and its agencies are:

• the Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs

• the Hon. Tanya Plibersek, MP, Minister for Housing and Minister for the Status of Women

• the Hon. Bill Shorten, MP, Parliamentary Secretary for Disabilities and Children’s Services and Parliamentary Secretary for Victorian Bushfire Reconstruction

• Senator the Hon. Ursula Stephens, Parliamentary Secretary for Social Inclusion and the Voluntary Sector.

The portfolio has 12 outcome statements. The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has seven. The Equal Opportunity for Women in the Workplace Agency has its own outcome statement. In pursuing the achievement of this outcome, it also contributes to the achievement of FaHCSIA’s Women’s outcome statement. Aboriginal Hostels Limited, Indigenous Business Australia, the Indigenous Land Corporation and the Torres Strait Regional Authority each have their own outcome statements. In pursuing the achievement of their outcomes, they also contribute to the achievement of the FaHCSIA Indigenous outcome statements.

Department of Families, Housing, Community Services and Indigenous Affairs

FaHCSIA is a key source of advice to the Australian Government on social policy and works in partnership with other government and non-government organisations to manage a diverse range of programs and services designed to support and improve the lives of Australians.

FaHCSIA has whole of government policy coordination responsibilities in relation to Indigenous affairs and women.

The Department is subject to the Financial Management and Accountability Act 1997 (FMA Act).

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Portfolio Overview

Equal Opportunity for Women in the Workplace Agency

Equal Opportunity for Women in the Workplace Agency (EOWA) is a statutory authority which administers the Equal Opportunity for Women in the Workplace Act 1999 and is subject to the FMA Act. The principal functions of EOWA are to promote employment for women on the basis of merit, promote equal opportunity, eliminate discrimination and foster workplace consultation between employers and employees on these issues. EOWA contributes to portfolio goals by working with business to develop work practices that improve women’s workforce participation in an environment free from discrimination.

Aboriginal Hostels Limited

Aboriginal Hostels Limited (AHL) is an Australian Government company subject to the Corporations Act 2001 and Commonwealth Authorities and Companies Act 1997 (CAC Act). AHL provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network. AHL contributes to the portfolio’s goals by helping Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health, aged care, educational and employment-related goals.

Indigenous Business Australia

Indigenous Business Australia (IBA) is a statutory authority established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is subject to the CAC Act. IBA creates opportunities for Aboriginal and Torres Strait Islander people and communities to build assets and wealth.

IBA contributes to the portfolio goals by contributing to Indigenous economic development. To achieve this, IBA assists the Government in working with the private sector and local Indigenous people to encourage and foster Indigenous economic independence.

Indigenous Land Corporation

The Indigenous Land Corporation (ILC) is a statutory authority established under the ATSI Act and is subject to the CAC Act. The ILC assists Aboriginal and Torres Strait Islander people to acquire and manage Indigenous-held land so as to provide economic, environmental, social and cultural benefits. The ILC contributes to the goals of the portfolio by assisting in the delivery of sustainable benefits from land acquisition and by providing land management assistance.

Torres Strait Regional Authority

The Torres Strait Regional Authority (TSRA) is a statutory authority established by the ATSI Act and is subject to the CAC Act. TSRA formulates, implements and monitors the effectiveness of programs for Aboriginal and Torres Strait Islander people living in the Torres Strait and advises the Minister for Families, Housing, Community Services and Indigenous Affairs about Aboriginal and Torres Strait Islander affairs.

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Portfolio Overview

TSRA contributes to the goals of the portfolio by working to empower Aboriginal and Torres Strait Islander people living in the Torres Strait to determine their own affairs based on the Ailan Kastom (Island Custom) of the Torres Strait, which provides a source of unity and strength.

Aboriginal Land Commissioner

The Aboriginal Land Commissioner is an independent statutory office holder under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) and is subject to the FMA Act. The principal function of the Commissioner is to consider applications for claims to traditional land and to provide findings to the Minister for Families, Housing, Community Services and Indigenous Affairs for the granting of land.

Executive Director of Township Leasing

The position of Executive Director, Township Leasing is a statutory office established under the ALRA to enter into leases of Aboriginal-held land in the Northern Territory on behalf of the Commonwealth, and to administer sub-leases and other rights and interests derived from such leases.

A central function of the Executive Director is to enter into leases over townships on Aboriginal land in the Northern Territory in accordance with section 19A of the ALRA, following approval from traditional owners.

Northern Territory land councils

The Northern Land Council, the Central Land Council, the Anindilyakwa Land Council and the Tiwi Land Council are the four Northern Territory land councils established under the ALRA. The land councils are subject to the CAC Act. Each is an independent statutory body established to represent Aboriginal interests in a range of processes under the ALRA.

Registrar of Indigenous Corporations

The Registrar of Indigenous Corporations is an independent statutory office holder who administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and is subject to the FMA Act. The Registrar of Indigenous Corporations registers and regulates Aboriginal and Torres Strait Islander corporations.

Social Security Appeals Tribunal

The Social Security Appeals Tribunal (SSAT) is a statutory body under the Social Security (Administration) Act 1999 and is subject to the FMA Act. The SSAT conducts merit reviews of administrative decisions made under a number of enactments, in particular social security law, family assistance law and child support law.

The tribunal has the power to review decisions independently of Centrelink and the Child Support Agency. It provides a review mechanism that is just, efficient, effective and informal. The SSAT contributes to the portfolio by ensuring that administrative

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Portfolio Overview

decisions of Centrelink and the Child Support Agency are consistent with the legislation.

Wreck Bay Aboriginal Community Council

The Wreck Bay Aboriginal Community Council is an independent statutory body established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 and is subject to the CAC Act. The council holds title to land and provides services to the Aboriginal community of Jervis Bay.

Outback Stores Limited

Outback Stores Limited (OBS) is an Australian Government company subject to the Corporations Act 2001 and the CAC Act. OBS assists the health, employment and economy of remote Indigenous communities by managing quality, sustainable retail stores. OBS contributes to the portfolio’s goals by helping Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health goals.

Coordinator-General Remote Indigenous Services

The Coordinator-General Remote Indigenous Services is a statutory office established under the Coordinator-General for Remote Indigenous Services Act 2009 and is subject to the FMA Act. The central functions of the Coordinator-General are to: monitor, assess, advise and drive the development and delivery of government services and facilities in each of the specified remote communities to a standard broadly comparable with that in non-Indigenous communities of similar size, location and needs elsewhere in Australia, and to monitor, assess, advise and drive progress towards achieving closing the gap targets in those same communities.

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Portfolio Overview

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes

Minister for Families, Housing, Community Services and Indigenous Affairs The Hon. Jenny Macklin, MP

Minister for Housing and Minister for the Status of Women The Hon. Tanya Plibersek, MP

Parliamentary Secretary for Disabilities and Children’s Services and Parliamentary Secretary for Victorian Bushfire Reconstruction

The Hon. Bill Shorten, MP

Parliamentary Secretary for Social Inclusion and the Voluntary Sector Senator the Hon. Ursula Stephens

Department of Families, Housing, Community Services and Indigenous Affairs

Secretary: Dr Jeff Harmer

Outcome 1: Families and Children – Improved child development, safety and family functioning through support services for all Australians, payments for low and medium income families with children and child support policy.

Outcome 2: Housing – Access to affordable, safe housing through: payments and support services; and rental subsidies to low and moderate income households.

Outcome 3: Community Capability and the Vulnerable – Improved capacity for vulnerable people and communities to participate economically and socially and to manage life-transitions through payments, targeted support services and community capability building initiatives.

Outcome 4: Seniors – An adequate standard of living and improved capacity to productively manage resources and life-transitions for senior Australians through the delivery of payments, concessions and information services.

Outcome 5: Disability and Carers – An adequate standard of living, improved capacity to participate economically and socially and manage life-transitions for people with disability and/or mental illness and carers through payments, concessions, support and care services.

Outcome 6: Women – Improved gender equality through coordinated whole of government advice and support for women’s economic security, safety and status.

Outcome 7: Indigenous – Closing the gap in Indigenous disadvantage with improved wellbeing, capacity to participate economically and socially and to manage life-transitions for Indigenous Australians through Indigenous engagement, coordinated whole of government policy advice and targeted support services.

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Portfolio Overview

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes (continued)

Minister for Families, Housing, Community Services and Indigenous Affairs The Hon. Jenny Macklin, MP

Minister for Housing and Minister for the Status of Women The Hon. Tanya Plibersek, MP

Parliamentary Secretary for Disabilities and Children’s Services and Parliamentary Secretary for Victorian Bushfire Reconstruction

The Hon. Bill Shorten, MP

Parliamentary Secretary for Social Inclusion and the Voluntary Sector Senator the Hon. Ursula Stephens


General Manager: Mr Keith Clarke

Outcome: Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services.


Acting Director: Ms Mairi Steele

Outcome: Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit based opportunity.


General Manager: Mr David Galvin

Outcome: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

Social Security Appeals Tribunal

Executive Director: Mr Les Blacklow

Objective: Conduct merit reviews of administrative decisions made under a number of enactments, in particular social security law, family assistance law and child support law.


General Manager: Mr Bruce Gemmell

Outcome: Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans. Northern Territory Land Council

Northern Land Council Central Land Council

Anindilyakwa Land Council Tiwi Land Council

Objective: Represent Aboriginal interests in various processes under the Aboriginal Land Rights (Northern Territory) Act 1976.


General Manager: Mr Wayne See Kee

Outcome: Progress towards closing the gap for Torres Strait and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management and preservation and promotion of Indigenous culture.

Wreck Bay Aboriginal Community Council

Objective: Established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 to hold title to land and provide council services to the Aboriginal Community of Jervis Bay.

Outback Stores Limited

Chief Executive Officer: Alastair King

Outcome: Outback Stores Limited transferred to the Commonwealth in March 2010. An outcome statement will be developed for the 2011–12 PB Statements.

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Portfolio Overview

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2010–11 budget year, by agency.

Table 1: Portfolio resources 2010–11 Appropriation Appropriation Special Receipts Total

Bill No. 1 Bill No. 2 Appropriation$'000 $'000 $'000 $'000 $'000

FaHCSIA1

Administered appropriations 1,667,482 - 69,953,928 326,548 71,947,958Departmental appropriations 547,959 14,417 - 27,240 589,616Total: 2,215,441 14,417 69,953,928 353,788 72,537,574EOWAAdministered appropriations - - - - - Departmental appropriations 3,002 - - 466 3,468Total: 3,002 - - 466 3,468

AHL2

Administered appropriations - - - - - Departmental appropriations 42,655 6,920 - 11,482 61,057Total: 42,655 6,920 - 11,482 61,057

IBA2

Administered appropriations - - - - - Departmental appropriations 38,458 33,170 - 95,540 167,168Total: 38,458 33,170 - 95,540 167,168

ILC2

Administered appropriations - - - - - Departmental appropriations - - - 55,539 55,539Total: - - - 55,539 55,539

TSRA2

Administered appropriations - - - - - Departmental appropriations 69,758 - - 6,385 76,143Total: 69,758 - - 6,385 76,143Portfolio Total 2,369,314 54,507 69,953,928 523,200 72,900,949Less amounts transferred

within Portfolio - - - - -Resources available within Portfolio: 72,900,949

1 Total resourcing does not include the balance of special accounts carried forward from 2009–10. 2 Funding under Appropriation Bill (No. 1) 2010–11 for agencies under the CAC Act is appropriated to

FaHCSIA and then paid to each agency.

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AGENCY RESOURCES ANDPLANNED PERFORMANCE

Department of Families, Housing, Community Services and Indigenous Affairs ...........................................................................................................................15

Equal Opportunity for Women in the Workplace Agency.....................................159

Aboriginal Hostels Limited.......................................................................................183

Indigenous Business Australia................................................................................209

Indigenous Land Corporation..................................................................................245

Torres Strait Regional Authority..............................................................................273

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Department of Families, Housing, Community Services

and Indigenous Affairs

Agency resources and planned performance

DEPARTMENT OF FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS

Section 1: Agency overview and resources.............................................................17 1.1 Strategic direction statement ..........................................................................17 1.2 Agency resource statement............................................................................23 1.3 Budget measures............................................................................................26

Section 2: Outcomes and planned performance .....................................................37 2.1 Outcomes and performance information ........................................................37

Section 3: Explanatory tables and budgeted financial statements .....................138 3.1 Explanatory tables ........................................................................................138 3.2 Budgeted financial statements .....................................................................146

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FaHCSIA Budget Statements

DEPARTMENT OF FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION

About FaHCSIA The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is a major player in the delivery of the Australian Government’s social policy agenda. FaHCSIA’s purpose is to improve the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.

FaHCSIA’s outcomes reflect the seven core areas in which the Department seeks to assist people:

1. Families and Children

2. Housing

3. Community Capability and the Vulnerable

4. Seniors

5. Disability and Carers

6. Women

7. Indigenous.

The detailed outcome statements for the seven outcome areas can be found in Section 2 of these Portfolio Budget Statements (PB Statements). To achieve the outcomes, FaHCSIA uses four key modes of business delivery:

• Payments to individuals—FaHCSIA makes direct payments to individuals through Centrelink and other agencies. Primary examples include the Age Pension, the Disability Support Pension (DSP) and the Family Tax Benefit (FTB).

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• Working with the states and territories—FaHCSIA works with the states and territories to achieve outcomes in a number of shared policy areas, including housing, disability services, Indigenous reform, concessions and the welfare of children.

• Payments for community services—FaHCSIA funds community-based organisations to deliver a range of local services, including family relationship services, emergency relief and disability employment services.

• Policy development, leadership, advice and coordination—FaHCSIA supports its Ministers in their policy roles by providing advice on social policy, building the evidence base for action and in whole of government policy coordination for Indigenous affairs and for women.

Key priorities for 2010–11 In 2010–11, FaHCSIA will be focused on successful implementation of previously announced government reforms. Implementing Australia’s first Paid Parental Leave scheme, due to commence on 1 January 2011, will be a key priority. For the first time, many Australian families, particularly low income earners, seasonal workers, casual workers, contractors and the self-employed will have access to paid parental leave. The scheme will ensure that parents can spend valuable time with their newborns while maintaining their connection to the workforce. It is estimated that 148,000 families each year will be eligible for the scheme.

The Secure and Sustainable Pension Reform package has been successfully implemented, and most components commenced from 20 September 2009. Two further measures are to be implemented from 1 July 2010 (improved pension advances and the option to receive the Pension Supplement quarterly). The Department will continue to monitor the impacts of the package, including its longer term effects. To respond to the long-term cost of demographic change and to reflect improvements in life expectancy, the Government will progressively increase the qualifying age for the Age Pension to 67 beginning in 2017.

As announced in the 2009–10 Budget, as part of the Secure and Sustainable Pension Reform package, the Government is introducing better and fairer assessment procedures for the Disability Support Pension (DSP). From 1 July 2010, DSP assessment will be simplified to fast-track more claimants who are clearly or manifestly eligible due to a catastrophic, congenital disability or cancer, enabling them to receive financial support more quickly. In cases which are not clear cut, people will now have their eligibility for DSP assessed by senior job capacity assessors. This will make sure claimants are seen by an experienced assessor and receive a thorough assessment.

Disability and carer reform is continuing, with the announcement in December 2009 of the Productivity Commission’s inquiry into a national long-term care and support

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scheme, including the feasibility of a no-fault social insurance approach. The development of the National Disability Strategy and National Carer Strategy are intended to improve the outcomes from specialist and mainstream services for these groups. In addition, the Carer Recognition Bill 2010 will recognise in law the role and contribution of Australia’s carers.

FaHCSIA is focusing its efforts on improving access to and alignment of its payments and programs. This will help to ensure that individuals, families and communities are better equipped to respond positively to opportunities and reduce the risk of prolonged or lifelong impacts from negative or major disruptive life events. This requires using our evidence base to best ensure that an appropriate mix of national and location-specific programs is delivered. FaHCSIA’s relationships with policy and delivery partners are robust, and we are working together to meet both the mainstream and more complex needs of Australians. A key focus for the coming year is improved identification of people who are vulnerable or at risk of adverse outcomes at certain life transitions.

New measures, such as the Weekly income support payments to vulnerable Australians, will allow the most vulnerable customers to budget more easily. The weekly payment initiative gives people an opportunity to stabilise and improve their circumstances. The aim is to prevent people becoming homeless or losing connections to their community as a result of having difficulty managing their money. Customers who are eligible for weekly payments will receive service referrals and be encouraged to participate in activities designed to support them in their current circumstances, including help to address their financial difficulties and the causes of those difficulties (for example, through referral to alcohol, drug or gambling rehabilitation services).

The Government will implement a new income management scheme starting in the Northern Territory to protect children and families and help disengaged and vulnerable individuals. This forms part of the Government’s commitment to progressively reforming the welfare and family payment system to foster responsibility and to provide a platform for people to move up and out of welfare dependence. Income management is a key tool in the reforms to ensure responsible use of welfare payments to promote strong families and positive child outcomes. Subject to the passage of legislation, from 1 July 2010, a new income management scheme will begin to be rolled out in vulnerable regions, targeted at individuals at risk. This will commence in the Northern Territory across urban, regional and remote areas, before an evaluation during 2011–12 to inform future rollout.

The National Framework for Protecting Australia’s Children 2009–2020 is a key component of the Government’s effort to assist vulnerable children. As part of the framework, FaHCSIA is working with state and territory governments and the non-government sector to develop the National Standards for Out of Home Care. The guiding objective of the national standards is that children living in out-of-home care receive the same opportunities to develop and become healthy children and young

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The introduction of the Indigenous Remote Service Delivery National Partnership is a significant step in improving the delivery of health, education, employment and other services to 29 priority remote Indigenous locations. The partnership is establishing a new remote service delivery model that clearly identifies service standards, roles and responsibilities, and service delivery parameters. Whole of government coordination arrangements are now in place, including locally based Government Business Managers and Indigenous Engagement Officers, along with Regional Operations Centres.

FaHCSIA will also play an important part in the service delivery reform announced in December 2009, which is being led by the Department of Human Services. The reforms are designed to improve access to social, health and welfare services. FaHCSIA will play a role in contributing to the direction of the reforms and ensuring that service offers meet the needs of its clients.

The launch of the National Compact on 17 March 2010 will assist the Government to form innovative partnerships with the Third Sector (community and not-for-profit organisations) to address many long-term social challenges and improve outcomes for vulnerable Australians. The Government will work with the sector to develop an overarching Commonwealth action plan in 2010 addressing eight priority action areas.

The Department has significant responsibilities in managing key elements of the Council of Australian Governments (COAG) reform agenda, in the areas of housing, disability and Indigenous reform. It is expected that the COAG Reform Council’s reports on national agreements in these areas will be published in May 2010. While FaHCSIA maintains policy and performance management responsibility for these elements of the COAG reform agenda, funds that were previously paid to the states and territories by FaHCSIA are now appropriated to the Department of the Treasury (the Treasury).

Economic and fiscal context for the 2010–11 Budget Australia has performed comparatively well throughout the global financial crisis, although the effects of the downturn were felt by many Australians. FaHCSIA played a major part in delivering assistance to individuals and families to help them through this period, including one-off payments to individuals and families, more support for emergency relief and financial counselling, and a major investment in social housing.

The decisions reflected in these PB Statements are based on responsible financial management, a thorough scrutiny of existing effort and the prioritisation of new spending. Savings have sought to balance short-term fiscal constraints, longer term sustainability of outlays and the needs of disadvantaged Australians.

The third Intergenerational Report, released on 1 February 2010, identifies population ageing as one of the Government’s key challenges in the lead-up to 2050. One of the implications for FaHCSIA is the need for a continuing focus on the sustainability of

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payments and programs. By June 2050, around 22 per cent of the Australian population is projected to be aged 65 and over, highlighting the importance of the Secure and Sustainable Pension Reform package and other measures that promote the ongoing sustainability of FaHCSIA’s income support payments.

Concern about housing affordability and supply continues. In response, COAG has commissioned the development of a national housing supply and affordability reform agenda to be progressed as a matter of priority in 2010. FaHCSIA is working with the Treasury to progress this work.

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1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: FaHCSIA resource statement—Budget estimates for 2010–11 as at Budget May 2010

Estimate Proposed Total Estimated of prior + at Budget = Estimate Available

year amounts Appropriationavailable in

2010–11 2010–11 2010–11 2009–10$'000 $'000 $'000 $'000

Ordinary Annual Services - Bill 11

Departmental appropriationPrior year departmental appropriation2 108,355 - 108,355Departmental appropriation3 - 547,959 547,959 573,133s. 31 Relevant agency receipts4 - 27,240 27,240 27,639Total 108,355 575,199 683,554 600,772

Administered expensesOutcome 1 600 202,728 203,328 183,132Outcome 2 - 135,987 135,987 118,962Outcome 3 2,678 204,899 207,577 195,296Outcome 4 - 4,995 4,995 5,000Outcome 5 14,600 453,964 468,564 458,881Outcome 6 - 20,805 20,805 27,475Outcome 7 20,067 606,159 626,226 715,681Total 37,945 1,629,537 1,667,482 1,704,427Non appropriated revenue - 35,769 35,769 41,542Payments to CAC Act Bodies - 150,871 150,871 143,071Total Administered 37,945 1,816,177 1,854,122 1,889,040

Total ordinary annual services A 146,300 2,391,376 2,537,676 2,489,812

Other services - Bill 25

Administered expensesDepartmental non-operating

Equity injections - 14,417 14,417 44,056Previous years' programs - - - 87,986Total - 14,417 14,417 132,042

Administered non-operatingPayments to CAC Act bodies -

non-operating - 40,090 40,090 36,960Total

Total other services B - 54,507 54,507 169,002

Total Available Annual Appropriations 146,300 2,445,883 2,592,183 2,658,814

Continued on next page.

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Table 1.1: FaHCSIA resource statement—Budget estimates for 2010–11 as at Budget May 2010 (continued)

Estimate Proposed Total Estimated of prior + at Budget = Estimate Available

year amounts Appropriationavailable in

2010–11 2010–11 2010–11 2009–10$'000 $'000 $'000 $'000

Special AppropriationsSpecial Appropriations limited

by criteria/entitlementAboriginal Land Rights (Northern Territory) Act 1976 - 194,187 194,187 178,819Social Security (Administration) Act1999

- 50,261,087 50,261,087 46,007,545

A New Tax System (Family Assistance)(Administration) Act 1999 - 18,859,435 18,859,435 19,203,034Northern Territory National Emergency Response Act 2007 - 2,593 2,593 4,815Paid Parental Leave - 636,626 636,626 -

Total Special Appropriations C - 69,953,928 69,953,928 65,394,213

Total Appropriations excluding Special Accounts 146,300 72,399,811 72,546,111 68,053,027

Special AccountsOpening balance6 2,210,526 - 2,210,526 2,103,933Appropriation receipts7 - 193,987 193,987 314,285Non-Appropriation receipts to Special Accounts - 290,779 290,779 282,350

Total Special Accounts D 2,210,526 484,766 2,695,292 2,700,568

Total resourcing 2,356,826 72,884,577 75,241,403 70,753,595A+B+C+DLess appropriations drawn fromannual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - -384,948 -384,948 -494,316Total net resourcing for FaHCSIA 2,356,826 72,499,629 74,856,455 70,259,279

Continued on next page. 1 Appropriation Bill (No. 1) 2010–11. 2 Estimated adjusted balance carried from previous year. 3 Includes an amount of $22.8 million in 2010–11 for the Departmental Capital Budget (DCB) (refer to

table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

4 s. 31 relevant agency receipts—estimate. 5 Appropriation Bill (No. 2) 2010–11 6 Estimated opening balance for special accounts. For further information on special accounts, see

Table 3.1.2, Section 3. 7 Appropriation receipts from FaHCSIA annual and special appropriations for 2010–11 included above. Note: All figures are GST exclusive.

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Table 1.1: FaHCSIA resource statement—Budget estimates for 2010–11 as at Budget May 2010 (continued) Third-party payments from and on behalf of other agencies

2010–11 2009–10$'000 $'000

Centrelink has the authority to make the following payments to customerson behalf of FaHCSIA:

Special Appropriations - A New Tax System (Family Assistance) 19,002,663 19,650,137(Administration) Act 1999Special Appropriations - Social Security (Administration) Act 1999 50,316,250 46,026,290Special Appropriations - Paid Parental Leave 8 441,152 -Annual Appropriations - Ex-Gratia and Act of Grace Payments 3,630 10,286

DVA has the authority to make the following payments to customerson behalf of FaHCSIA:

Special Appropriations - Social Security (Administration) Act 1999 68,755 67,078

Payments made to other agencies for the provision of servicesAustralian Taxation Office 607 671Centrelink - 69,301Department of Veterans' Affairs 199 200Medicare Australia 9,222 9,220

Payments made to CAC Act bodies within the portfolio Aboriginal Hostels Limited 49,575 40,630Indigenous Business Australia 71,628 72,010Torres Strait Regional Authority 69,758 67,391

8 Subject to passage and enactment.

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1.3 BUDGET MEASURES

Table 1.2: FaHCSIA 2010–11 Budget measures Program 2009–10 2010–11 2011–12 2012–13 2013–14

$'000 $'000 $'000 $'000 $'000Expense measures

Outcome 1 – Families

Drought assistance – Family Support Drought Response Teams program –extension 1.1

Administered expenses - 6,613 - - -Departmental expenses - 1,094 - - -

Total - 7,707 - - -Drought policy reform – pilot of new measures in Western Australia1 1.1

Administered expenses - 945 - - -Departmental expenses - - - - -

Total - 945 - - -

National Find and Connect Service for the Forgotten Australians and formerchild migrants 1.1

Administered expenses - 3,615 6,443 6,323 4,468Departmental expenses - 933 1,218 965 867

Total - 4,548 7,661 7,288 5,335

Family Tax Benefit Part A – improved participation requirements for 16 to 20year olds 1.2

Administered expenses -1,097 -20,863 -20,924 -21,227 -21,480Departmental expenses 393 503 269 176 176

Total -704 -20,360 -20,655 -21,051 -21,304Family Tax Benefit Non-lodger Fortnightly Payment Prohibition – more flexible arrangements2 1.2

Administered expenses - - - - -Departmental expenses - - - - -

Total - - - - -Paid Parental Leave – implementation 1.3

Administered expenses 300 2,900 - - -Departmental expenses - - 123 97 71

Total 300 2,900 123 97 71 Continued on next page.

Outcome 1 – Families and Children


Table 1.2: Agency 2010–11 Budget measures (continued) Program 2009–10 2010–11 2011–12 2012–13 2013–14

$'000 $'000 $'000 $'000 $'000Outcome 3 – Community Capability and the Vulnerable

Income management in cases of child neglect and by voluntary choice – continuation of trial 3.1

Administered expenses - 5,258 - - -Departmental expenses - 1,206 - - -

Total - 6,464 - - -School Enrolment and Attendance Trial – continuation3 3.1

Administered expenses - - - - -Departmental expenses - 71 - - -

Total - 71 - - -Adventure playgrounds 3.2

Administered expenses - 658 670 682 694Departmental expenses - - - - -

Total - 658 670 682 694

Queensland Premier's Disaster Relief Appeal – Commonwealth contribution 3.2

Administered expenses -250 - - - -Departmental expenses - - - - -

Total -250 - - - -Western Australia's Children's Health Telethon – donation4 3.2


Total - - - - -An Innovation and Higher Education System for the 21st Century – Student income support – additional funding for service delivery3 3.3

Administered expenses - - - - -Departmental expenses - 385 78 78 79

Total - 385 78 78 79Act of Grace Payments – ongoing arrangements 3.4

Administered expenses 318 262 272 282 293Departmental expenses - - - - -

Total 318 262 272 282 293NSW Mid-North Coast floods – assistance for March 2009 event 3.4

Administered expenses 295 - - - -Departmental expenses - - - - -

Total 295 - - - - Continued on next page.

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$'000 $'000 $'000 $'000 $'000NSW Mid-North Coast floods – assistance for November 2009 event 3.4

Administered expenses 10,983 - - - -Departmental expenses - - - - -

Total 10,983 - - - -Samoan tsunami and Sumatran earthquakes – assistance5 3.4

Administered expenses 537 - - - -Departmental expenses - - - - -

Total 537 - - - -South West Queensland floods – assistance 3.4

Administered expenses 11,220 1,316 - - -Departmental expenses - - - - -

Total 11,220 1,316 - - -Victorian storms – assistance 3.4

Administered expenses 2,070 290 - - -Departmental expenses - - - - -

Total 2,070 290 - - -

Western Australian bushfires – assistance 3.4Administered expenses 578 - - - -Departmental expenses - - - - -

Total 578 - - - -

Outcome 4 – SeniorsExtend qualifying service to service in Ubon for the period 31 May 1962 to 27 July 19626 4.1

Administered expenses - -940 -981 -1,046 -1,061Departmental expenses - - - - -

Total - -940 -981 -1,046 -1,061Clarke Review – lower the age to establish domicile to under 21 years for British Commonwealth and Allied veterans6 4.1

Administered expenses - -18 -19 -20 -21Departmental expenses - - - - -

Total - -18 -19 -20 -21

Clarke Review – provide Australian Defence Force British nuclear test participants with compensation equivalent to non-warlike or hazardous service6 4.1

Administered expenses - -2,359 -2,658 -2,956 -3,266Departmental expenses - - - - -

Total - -2,359 -2,658 -2,956 -3,266 Continued on next page.

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$'000 $'000 $'000 $'000 $'000Special Disability Trusts – greater accessibility 4.1


Total - 31 104 196 314

War Widow/er pension – removal of entitlement for new claimants who enter a de facto relationship6 4.1


Total - 19 76 129 186

Outcome 5 – Disability and CarersClarke Review – reclassify submarine special operations that were conducted in the period 1978 to 1992 as warlike service6 5.2

Administered expenses - -597 -621 -643 -667Departmental expenses - - - - -

Total - -597 -621 -643 -667F-111 Deseal/Reseal maintenance workers – further support6 5.2, 5.3

Administered expenses -6 -17 -18 -19 -19Departmental expenses - - - - -

Total -6 -17 -18 -19 -19Job Capacity Assessment – more efficient and accurate assessments for Disability Support Pension and employment services3

5.2, 5.3, 5.4

Administered expenses - 150 -22,012 -199,886 -350,457Departmental expenses - 188 1,559 1,943 2,027

Total - 338 -20,453 -197,943 -348,430National Disability Strategy – coordination7 5.4


Total - - - - -Community engagement strategy for people with disability8 5.4

Administered - - - - -Departmental - - - - -

Total - - - - - Continued on next page.

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$'000 $'000 $'000 $'000 $'000Outcome 7 – IndigenousCommunity Development Employment Projects – indexation reform 7.1

Administered expenses - -442 -661 -3,310 -4,384Departmental expenses - - - - -

Total - -442 -661 -3,310 -4,384Community Development Employment Projects – redirection 7.1

Administered expenses - -3,000 - - -Departmental expenses - - - - -

Total - -3,000 - - -

Remote Service Delivery National Partnership Flexible Funding Pool – establishment 7.4

Administered expenses - 17,000 17,000 12,000 -Departmental expenses - - - - -

Total - 17,000 17,000 12,000 -Indigenous Communities Strategic Investment program – reduction9 7.4

Administered expenses -1,650 -15,510 -15,840 -12,620 -2,630Departmental expenses - - - - -

Total -1,650 -15,510 -15,840 -12,620 -2,630Indigenous Land Corporation – new funding arrangements10 7.4


Total - - - - -National Congress of Australia's First Peoples – establishment11 7.4

Administered expenses 2,952 6,234 6,795 8,341 4,911Departmental expenses - - - - -

Total 2,952 6,234 6,795 8,341 4,911Cross-OutcomeSocial Security Appeals Tribunal – training

Outcome 1 1.1, 1.2Administered expenses - - - - -Departmental expenses - -79 -80 -80 -81

Outcome 4 4.1Administered expenses - - - - -Departmental expenses - -23 -23 -23 -23

Outcome 5 5.4, 5.5 `Administered expenses - - - - -Departmental expenses - -60 -60 -61 -61

Total - -162 -163 -164 -165 Continued on next page.

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$'000 $'000 $'000 $'000 $'000Family Relationship Services for Carers – continuation12

Outcome 1 1.1Administered expenses - - - - -Departmental expenses - - - - -


Total - - - -Stronger, fairer, simpler tax reform – standard deduction for work-related expenses and the cost of managing tax affairs13

Outcome 1 1.2Administered expenses - - - 57,622 147,451Departmental expenses - - - - -

Outcome 4 4.2Administered expenses - - - - 760Departmental expenses - - - - -

Total - - - 57,622 148,211

Stronger, fairer, simpler tax reform – 50 per cent discount for interest income13

Outcome 1 1.2Administered expenses - - 26,860 26,626 26,253Departmental expenses - - - - -

Outcome 4 4.2Administered expenses - - - 5,448 5,826Departmental expenses - - - - -

Total - - 26,860 32,074 32,079Bulk Verification of Community Housing Rent

Outcome 1 1.2Administered expenses - 13 27 29 31Departmental expenses - - - - -


Outcome 5 5.2, 5.3Administered expenses - 170 366 388 414Departmental expenses - - - - -

Total - 285 613 650 693 Continued on next page.

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$'000 $'000 $'000 $'000 $'000Fraud prevention and compliance – Centrelink debts – enhanced capability for Centrelink to detect and respond to emerging fraud risks14

Outcome 1 1.2Administered expenses - -637 -1,250 -1,518 -1,535Departmental expenses - - - - -

Outcome 4 4.1Administered expenses - -2,493 -4,687 -5,759 -5,794Departmental expenses - - - - -

Outcome 5 5.2, 5.3Administered expenses - -4,738 -8,375 -9,274 -9,102Departmental expenses - - - - -

Total - -7,868 -14,312 -16,551 -16,431Fraud prevention and compliance – Centrelink debts – improvements to the tax garnishee process2, 14



Outcome 5 5.2, 5.3Administered expenses - - - - -Departmental expenses - - - - -

Total - - - - -Migration Program – allocation of places for 2010–1115

Outcome 1 1.2, 1.3Administered expenses * * * * *Departmental expenses * * * * *

Outcome 5 5.2Administered expenses * * * * *Departmental expenses * * * * *

Total * * * * * Continued on next page.

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$'000 $'000 $'000 $'000 $'000Office of the Coordinator-General – continued operations16

Outcome 2 2.2Administered expenses - - - - -Departmental expenses -205 -125 -45 - -

Outcome 7 7.2Administered expenses - - - - -Departmental expenses -205 -125 -45 - -

Total -410 -250 -90 - -A new scheme of income management in the Northern Territory11

Outcome 3 3.1Administered expenses 260 11,311 13,677 15,164 15,742Departmental expenses 423 3,790 3,257 3,158 3,179

Outcome 7 7.4Administered expenses - 750 - - -Departmental expenses - 437 - - -

Total 683 16,288 16,934 18,322 18,921Streamlining notification processes for compensation recipients

Outcome 3 3.3Administered expenses - - - - -Departmental expenses - - 13 12 12

Outcome 4 4.1Administered expenses - - -1,584 -2,844 -3,821Departmental expenses - 53 21 8 8

Outcome 5 5.2, 5.3Administered expenses - - -5,614 -9,976 -10,562Departmental expenses - 187 76 30 30

Total - 240 -7,088 -12,770 -14,333Weekly income support payments to vulnerable Australians2




Total - - - - - Continued on next page.

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$'000 $'000 $'000 $'000 $'000Fraud prevention and compliance – Centrelink debts – review of non-standard debt repayment rates2, 14



Total - - - - -

Reform of Community Development Employment Projects (CDEP) program in the Torres Strait


Outcome 5 5.2, 5.3Administered expenses - 3 54 260 271Departmental expenses - - - - -

Outcome 7 7.1Administered expenses - -11,847 -17,835 -8,500 -6,070Departmental expenses - 240 59 - -

Total - -11,603 -17,709 -8,177 -5,733Total expense measures

Administered 26,510 -5,820 -30,502 -145,812 -212,941Departmental 406 8,675 6,420 6,303 6,284

Total 26,916 2,855 -24,082 -139,509 -206,657 Continued on next page.

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$'000 $'000 $'000 $'000 $'000Capital measures

Outcome 1 – Families

National Find and Connect Service for the Forgotten Australians and former child migrants 1.1

Administered capital - - - - -Departmental capital - 1,638 - - -

Total - 1,638 - - -

Outcome 5 – Disability and CarersNational Disability Strategy – coordination17 5.4

Administered capital - - - - -Departmental capital - - - - -

Total - - - - -Total capital measures

Administered - - - - -Departmental - 1,638 - - -

Total - 1,638 - - -Prepared on a Government Financial Statistics (fiscal) basis. 1 This measure is led by the Department of Agriculture, Fisheries and Forestry. The full measure

description and package details appear in Budget Paper 2 under the Agriculture, Fisheries and Forestry portfolio.

2 This measure has no fiscal impact on the Commonwealth. Further details can be found in Budget Paper 2.

3 This measure is led by the Department of Education, Employment and Workplace Relations. The full measure description and package details appear in Budget Paper 2 under the Education, Employment and Workplace Relations portfolio.

4 The cost of this measure, $0.5 million (administered) in 2009–10, will be met from within existing resources.

5 This measure has been previously reported in the 2009–10 Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) Portfolio Additional Estimates Statements (PAES). Financial implications for this measure have been updated due to a revision to the number of customers receiving the payment.

6 This measure is led by the Department of Veterans' Affairs. The full measure description and package details appear in Budget Paper 2 under the Veterans' Affairs portfolio.

7 The cost of this measure, $5.0 million (departmental) over 4 years, will be met from within existing resources.

8 The cost of this measure, $0.5 million (administered) in 2010–11, will be met from within existing resources.

9 This measure has been previously reported in the 2009–10 FaHCSIA PAES. Financial implications for this measure have been updated since PAES to provide funding for the Remote Service Delivery Flexible Funding Pool.

10 Funding for this measure has already been provided in the forward estimates. Further details can be found in Budget Paper 2.

11 This measure has previously been reported in the 2009–10 FaHCSIA PAES. 12 The Government will continue this measure at a cost $2.2 million in 2010–11 and 2011–12 and $2.3

million in 2012–13 and 2013–14. This funding has already been included in the forward estimates. 13 This measure is led by the Australian Taxation Office. The full measure description and package details

appear in Budget Paper 2 under the Treasury portfolio. 14 This measure is led by the Department of Human Services. The full measure description and package

details appear in Budget Paper 2 under the Human Services portfolio.


15 Funding for this measure will be agreed post Budget. This measure is led by the Department of Immigration and Citizenship. The full measure description and package details appear in Budget Paper 2 under the Immigration and Citizenship portfolio.

16 This measure is led by the Department of the Prime Minister and Cabinet. The full measure description and package details appear in Budget Paper 2 under the Prime Minister and Cabinet portfolio.

17 The cost of this measure, $1.2 million (capital) in 2010–11, will be met from within existing resources.

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Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. For each program, the performance indicators used to assess and monitor the performance of FaHCSIA in achieving government outcomes are specified.

The Department has just completed the second year of a two-year review process implementing revised performance information to meet the requirements of Operation Sunlight. In the first year, the Department developed new outcome statements, and program and program component objective statements and deliverables. It conducted a major review of key performance indicators, with the main focus of the work being on Bill 2 programs, special appropriations and special accounts, particularly on income support programs. This year, the focus has been on Bill 1 programs. There have also been some stylistic changes to indicators to ensure greater consistency across the Department; those changes have not altered the nature of the information presented.

All changes to the substance of key performance indicators have been footnoted and the reasons explained.

The portfolio glossary has been expanded to provide further assistance in interpreting key performance indicators. Definitions of terms such as ‘payment accuracy’ are included in the glossary.

FaHCSIA’s National Agreements and National Partnership Agreements under the Federal Financial Relations framework National Agreements set out the objectives, outputs and outcomes that will be jointly achieved between the Commonwealth, states and territories. National Partnership Agreements provide a mechanism to enable policy or project collaboration and, in most cases, provide for financial transfers between the Commonwealth and the states to support that collaboration. Figure 2 provides a summary of those agreements that FaHCSIA has direct policy portfolio responsibility for, or to which it significantly contributes. FaHCSIA has a leading agency role for most of these, with the exception of those footnoted below.

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Further information about COAG can be found at http://www.coag.gov.au. Further performance information about specific National Partnership Agreements can be found at the Council for Federal Financial Relations website: http://www.federalfinancialrelations.gov.au.

Figure 2: National Agreements that FaHCSIA has portfolio responsibility for, or to which FaHCSIA significantly contributes

Outcomes

Agreements 1 2 3 4 5 6 7

National Agreements

National Affordable Housing Agreement

National Disability Agreement

National Indigenous Reform Agreement

National Partnerships

Indigenous

Closing the Gap – in the Northern Territory

Indigenous Early Childhood Development1

Indigenous Economic Participation2

Remote Service Delivery

Community Services

Certain Concessions for Pensioners and Senior Card Holders

Home and Community Care3

Victorian Bushfire Recovery Plan

Housing

Homelessness

Nation Building and Jobs Plan – Social Housing

Social Housing

Remote Indigenous Housing 1 The Department of Education, Employment and Workplace Relations (DEEWR) is the lead government

agency for the National Partnership Agreement on Indigenous Early Childhood Development; the family support requirements are being provided by FaHCSIA.

2 DEEWR is the lead agency, with responsibility for overall reporting for the National Partnership Agreement on Indigenous Economic Participation, and is working closely with FaHCSIA, Commonwealth line agencies and jurisdictions on its implementation.

3 The Department of Health and Ageing is the lead agency for the National Partnership Agreement on Home and Community Care, and is working closely with FaHCSIA to provide integrated community services.

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Outcome 1: Families and Children

Improved child development, safety and family functioning through support services for all Australians, payments for low and medium income families with children and child support policy.

Outcome 1 strategy

FaHCSIA’s programs and payments for families are designed to provide assistance at key transition points and are particularly targeted to vulnerable and at-risk families and children. Assistance is provided for the birth of a child; parenting, particularly during early childhood; and family relationship problems and separation.

Through the payment of Family Tax Benefit (FTB) Part A, FaHCSIA makes a significant contribution to assist parents with the direct costs of raising children. The highest level of assistance goes to low and middle income families and reduces financial stress within those families. FTB Part B provides additional assistance to single parents and couple families with one main income earner.

Australia’s first Paid Parental Leave (PPL) scheme will further assist family functioning and child development by enabling more parents to spend time with their children during the crucial early months without losing their connection to the labour market. People who are not eligible for PPL or who choose not to participate will continue to be assisted with the costs of newborn children through the Baby Bonus and FTB.

FaHCSIA’s programs include services targeted to vulnerable and at-risk families. Through the creation of the Family Support Program, services are being consolidated into an integrated service delivery model providing comprehensive, family-focused, child-centred services.

The National Framework for Protecting Australia’s Children 2009–2020 and the National Plan to Reduce Violence against Women and their Children, under Outcome 6, contribute to the safety and wellbeing of families and children.

The new National Find and Connect Service for the Forgotten Australians and former child migrants will further contribute to family functioning and access to integrated services by implementing an Australia-wide, coordinated, family tracing and support service for Forgotten Australians and former child migrants seeking to locate personal records and reunite with members of their families, where that is possible and where other services are not available.

Under this outcome, FaHCSIA also provides advice to the Government on policies that affect families, including child support arrangements.

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Measures in the 2010–11 Budget will further enhance the Paid Parental Leave scheme and reform family payments.

Paid Parental Leave – implementation

The PPL scheme, will commence from 1 January 2011. For the first time, many Australian families, particularly low income earners, seasonal workers, casual workers, contractors and the self-employed will have access to paid parental leave.

While PPL payments will commence from 1 January 2011, employers will not be required to commence making PPL payments until 1 July 2011. Prior to that time, employers may ‘opt into’ the payment delivery role.

Employers will deliver payments to employees receiving PPL if certain conditions are met, including that the person has been an employee of the employer for 12 months or more immediately prior to the expected date of birth or adoption of the child. Employers will be obliged to deliver the Australian Government funded payment but will be entitled to appeal this requirement under certain conditions.

The enhanced communications campaign will support this approach by ensuring that employees and employers are aware of their rights and obligations under the scheme.

Family Tax Benefit Part A – improved participation requirements for 16 to 20 year olds

From 1 July 2009, new Youth Allowance early school leavers aged 15 to 20 years without a Year 12 or equivalent qualification must participate in full-time study/training, or part-time study/training in combination with other approved activities, leading to a Year 12 or equivalent qualification. At the 2009-10 Budget, the Government announced that the same rules would apply to FTB Part A. Instead, legislative amendments allow that from 1 January 2010 for new FTB Part A claimants (including end of year lump sum claimants), FTB Part A children aged 16 to 20 years without a Year 12 or equivalent qualification must participate in full-time education or training leading to a Year 12 or equivalent qualification. This rule will apply from 1 July 2010 to families who received or claimed FTB Part A prior to 1 January 2010. These requirements are more closely aligned to current eligibility requirements for FTB Part A dependants aged 21 to 24 years and FTB Part B dependants aged 16 to 18 years.

It is estimated that an additional 11,200 16 to 20 year olds in 2009–10 and 9,400 in 2010–11 will no longer qualify as dependent children because they are not undertaking full-time study.

Outcome 1 expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by program.

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Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1: Families and Children 2009–10 2010–11

Estimated Estimatedactual expenses

expenses$'000 $'000

Program 1.1: Family SupportAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 181,082 192,276Special Appropriations 38,922 -

Departmental expensesOrdinary Annual Services (Appropriation Bill No. 1) 55,428 52,656Revenues from independent sources (s. 31) 1,899 1,861Expenses not requiring appropriation in

the Budget year - 3,575

Subtotal for Program 1.1 277,331 250,368Program 1.2: Family Tax BenefitAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) - 150Special Appropriations 17,795,698 17,746,695

Departmental expensesOrdinary Annual Services (Appropriation Bill No. 1) 25,332 23,981Revenues from independent sources (s. 31) 868 850Expenses not requiring appropriation in


Subtotal for Program 1.2 17,821,898 17,773,304Program 1.3: Parental Payments and Care IncentivesAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 2,050 10,902Special Appropriations 1,408,226 1,752,902



Subtotal for Program 1.3 1,427,851 1,781,262

Outcome 1 totals by appropriation type:Administered expenses




Total expenses for Outcome 1 19,527,080 19,804,934

2009-10 2010-11Average staffing level (number) 515 539

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Contributions to Outcome 1

Program 1.1 Family Support

Program 1.1 objective

To increase access to and timely provision of integrated services for families, particularly vulnerable and at-risk families, to improve child development, safety and family functioning.

Program component objectives

Family Relationship Services

To increase access to and timely provision of services for families, particularly disadvantaged and at-risk families, to improve family functioning, including safety, and reduce the impact of family breakdown, family violence and substance abuse.

Children and Parenting Services

To provide intensive, targeted and coordinated support for parents and children who are vulnerable, at risk or in disadvantaged communities, to improve child development, child safety and family functioning.

Linked to: The policy responsibility for family law services resides with the Attorney-General’s Department.

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Program 1.1 expenses

The variations in program expenses across the forward years are largely driven by an end to one-off funding in 2009–10, continuation of other policy initiatives and projected changes in indexation parameters.

The one-off funding relates to measures for the Nation Building and Jobs Plan announced by the Australian Government on 3 February 2009, which provided one-off funding in 2008–09 and 2009–10 for the Back to School Bonus, the Single Income Family Bonus, and the Training and Learning Bonus. Other key policy initiatives affecting program estimates are the 2009–10 Budget Closing the Gap—Northern Territory Family Support Package, which provided $32.9 million over three years, and an extension of the 2009–10 Budget Drought Assistance—extension of the Family Support Drought Response Teams measure for one year to 30 June 2011.

Table 2.1.1: Budgeted expenses for Family Support 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Family Relationship Services B1 99,288 105,372 102,349 98,409 98,304Children and Parenting Services B1 81,794 86,904 88,691 89,275 91,024

Special Appropriations:A New Tax System (Family Assistance)(Administration) Act 1999

Back to School Bonus 1,209 - - - -Single Income Family Bonus 1,298 - - - -

Social Security (Administration) Act 1999Training and Learning Bonus 36,415 - - - -

Program Support 57,327 58,092 58,067 62,165 63,401

Total program expenses 277,331 250,368 249,107 249,849 252,729 B1 = Annual Appropriation Bill 1 (Ordinary Annual Services) Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Program 1.1 deliverables

Family Relationship Services / Children and Parenting Services

• Number of clients assisted

• An agreed Find and Connect Service delivery model is developed and commenced

• Strategies are in place that support improved access by care leavers to their records

Program 1.1 key performance indicators1

• Percentage and number of clients reporting improved family functioning, including child wellbeing

• Percentage and number of clients with improved knowledge and skills related to family functioning, parenting, family safety or child development

• Percentage and number of clients satisfied with the assistance received2

• Percentage and number of clients assisted from priority groups2

• Percentage and number of service sites in the most disadvantaged or targeted communities

1 The performance indicators ‘Number of service providers who meet accreditation requirement or relevant industry standards for service management and governance’, ‘Average cost per client’, ‘Average cost per session’ and ‘Percentage and number of service sites or outlets in disadvantaged or targeted communities’ have been deleted and replaced with new KPIs more directly related to client outcomes rather than provider outputs.

2 The Find and Connect Service is a new measure to which these performance indicators will also apply.

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Program 1.2: Family Tax Benefit


To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.


Family Tax Benefit Part A

To make payments to assist low and medium income families with the costs of raising dependent children. This supports better family functioning by improving the financial wellbeing of low and medium income families with children.

Family Tax Benefit Part B

To make payments to assist low and medium income families with one main income, including single parents, to enable them to exercise choices to balance labour force participation and child care responsibilities.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

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Table 2.1.2: Budgeted expenses for Family Tax Benefit 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Family Tax Benefit Participation Evaluation B1 - 150 - - -

Special Appropriations:A New Tax System (Family Assistance)(Administration) Act 1999

Family Tax Benefit Part A 13,441,129 13,296,872 13,373,356 13,580,883 13,808,959Family Tax Benefit Part B 4,354,569 4,449,823 4,475,611 4,626,276 4,784,955

Program Support 26,200 26,459 26,508 27,545 28,354

Total program expenses 17,821,898 17,773,304 17,875,475 18,234,704 18,622,268B1 = Annual Appropriation Bill 1 (Ordinary Annual Services). Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.



Payments are made through Centrelink and Medicare Australia to eligible claimants under the provisions of family assistance law.

Program 1.2 key performance indicators

Family Tax Benefit Part A and Part B

• Total number of recipients

• Percentage and number of recipients paid by instalment

• Percentage and number of recipients paid by lump sum

• Proportion and amount of administered outlays paid by instalment and by lump sum

• Percentage and number of recipients obtaining a qualification debt

• Percentage and number of recipients obtaining a debt following reconciliation

• Percentage and number of recipients obtaining a non-lodger debt

• Payment accuracy

• Percentage and number of families with children under 16 years of age receiving FTB Part A and/or FTB Part B

• Agreements are in place with all service delivery agencies

• Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies

Family Tax Benefit Part A

• Percentage and number of families in receipt of FTB Part A within income test categories

Family Tax Benefit Part B

• Percentage and number of families in receipt of FTB Part B within income test categories

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Program 1.3: Parental Payments and Care Incentives


To make payments to families to assist with the costs of a newborn or adopted child, extend the period that parents can be away from work to spend time with their new baby and encourage all families to fully immunise their children.


Paid Parental Leave

To make payments to working parents to enhance maternal and child health and development, facilitate workforce participation and promote gender equity and work–family balance.

Baby Bonus

To make payments to families to assist with the costs arising from the birth or adoption of a child.

Maternity Immunisation Allowance

To make payments to encourage families to fully immunise their natural and adopted children in accordance with Australian standards. (This supports improved child development and safety in all families by impeding the spread of infectious diseases within the Australian community.)

Double Orphan Pension

To make non–means-tested payments to guardians or approved care organisations to assist in meeting the costs of dependent children who are double orphans.


Immunisation is delivered by the Department of Health and Ageing. For information about the delivery of this program, refer to that department’s 2010–11 PB Statements: Outcome 1—Population Health, Program 1.5.

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The upward trending variations to program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives.

Significant policy initiatives also influence the forecasts, particularly the change to the Maternity Immunisation Allowance payments to encourage the immunisation of children aged four years and the introduction of the Paid Parental Leave (PPL) scheme from 1 January 2011.

The expenses for PPL communications and evaluation are for publicity campaigns in 2009–10 and 2010–11 with an evaluation to be undertaken between 2010 and 2013.

Table 2.1.3: Budgeted expenses for Parental Payments and Care Incentives 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Administered expenses:Paid Parental Leave -communication and evaluation B1 2,050 10,902 103 1,364 535

Special Appropriations:A New Tax System (Family Assistance)(Administration)Act 1999

Baby Bonus 1,369,939 1,076,647 890,134 922,797 956,821Maternity Immunisation Allowance 34,890 36,093 65,298 69,240 73,935

Paid Parental Leave legislation1

Paid Parental Leave - 636,626 1,327,618 1,381,039 1,440,491Social Security (Administration) Act 1999

Double Orphan Pension 3,397 3,536 3,705 3,834 3,978Program Support 17,575 17,458 15,814 16,533 16,249

Total program expenses 1,427,851 1,781,262 2,302,672 2,394,807 2,492,009 B1 = Annual Appropriation Bill 1 (Ordinary Annual Services) 1 Paid Parental Leave is proposed to be paid under an Act of Parliament yet to be passed. Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Payments are made through Centrelink and Medicare Australia (the Family Assistance Office) to eligible claimants under the provisions of family assistance law.

Double Orphan Pension is paid through Centrelink to eligible claimants under the provisions of social security law.

Paid Parental Leave is proposed to be paid under a new Act of Parliament. Program 1.3 key performance indicators

Paid Parental Leave (PPL)

• Number of mothers for whom PPL has been paid as a proportion of all mothers in the same year

• Percentage and number of parents paid PPL by employers

• Percentage and number of families who take the full 18 weeks of PPL

Baby Bonus

• Number and percentage of children for whom Baby Bonus is paid as a proportion of all children born in the same year

Maternity Immunisation Allowance

• Percentage and number of children vaccinated to the highest level appropriate for their age in the Australian community

Baby Bonus / Maternity Immunisation Allowance

• Number of recipients

• Administered outlays




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Outcome 2: Housing

Access to affordable, safe housing through: payments and support services; and rental subsidies to low and moderate income households.

Outcome 2 strategy

FaHCSIA’s housing programs and services aim to maximise access to affordable and safe housing for people who would otherwise have difficulty gaining such access. The assistance includes funding for public housing, community housing, the Housing Affordability Fund and the National Rental Affordability Scheme. For eligible people receiving income support or family payments and paying private rent, Rent Assistance helps to make their housing costs more affordable.

FaHCSIA has whole of government oversight of housing and homelessness policy and works in partnership with states and territories to improve the housing outcomes of Australians. Payments made under COAG national agreements are made by the Treasury. Performance indicators can be found at: http://www.federalfinancialrelations.gov.au.

FaHCSIA is also responsible for a range of initiatives to address homelessness and leads whole of government efforts to achieve the Government’s homelessness targets. Much of this work is done in partnership with states and territories under the National Partnership Agreement on Homelessness that supports the National Affordable Housing Agreement.

FaHCSIA is working with states and territories and the not-for-profit sector to provide a significant number of additional social and affordable housing dwellings through the Nation Building—Economic Stimulus Plan and the National Partnership Agreement on Social Housing. The Social Housing Initiative is the largest commitment by any government in Australia to social housing.

Access to stable and affordable housing, coupled with improved access to other services, helps support positive life transitions and can be a fundamental enabler for vulnerable people, including those leaving child protection, domestic violence and health facilities.

FaHCSIA’s housing and homelessness programs are informed by evidence and data provided by the Australian Bureau of Statistics, the Australian Institute of Health and Welfare and the National Housing Supply Council, which monitors the supply of and demand for housing, including affordable housing, and provides advice to the Government.



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Table 2.2: Budgeted expenses and resources for Outcome 2 Outcome 2: Housing 2009–10 2010–11


expenses$'000 $'000

Program 2.1: Affordable HousingAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 13,008 29,129Special Accounts 144 10,629


the Budget year - 480

Subtotal for Program 2.1 21,653 47,581

Program 2.2: Housing Assistance and HomelessnessPreventionAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 105,954 106,858Special Accounts 3,269 -





Ordinary Annual Services (Appropriation Bill No. 1) 118,962 135,987Special Accounts 3,413 10,629



Total expenses for Outcome 2 159,371 180,360

2009-10 2010-11Average staffing level (number) 209 209 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Program 2.1: Affordable Housing


To increase the supply of affordable rental dwellings for low and moderate income households by providing financial incentives through the National Rental Affordability Scheme.


National Rental Affordability Scheme

To provide incentive payments to scheme participants to increase the supply of affordable dwellings for low and moderate income households.

Other Services—Services for other Government and Non-Government Bodies (Special Account)

For expenditure in connection with services performed on behalf of other governments and bodies that are not agencies under the authority of section 20 of the Financial Management and Accountability Act 1997. This includes the National Rental Affordability Scheme.

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The National Rental Affordability Scheme (NRAS) provides a National Rental Incentive to the business sector and community organisations to build dwellings and rent them to low and moderate income households at 20 per cent or more below market rent rates. The projected expenses across the forward estimates have been updated in the 2010–11 Budget following an update of the implementation phasing and the revision of the original budget assumptions.

The incentive is delivered through either incentive payments or refundable tax offsets. The NRAS refundable tax offsets are delivered through the Australian Tax Office and are not part of the FaHCSIA budget.

Table 2.2.1: Budgeted expenses for Affordable Housing 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Administered expensesNational Rental Affordability Scheme B1 13,008 29,129 43,170 79,391 93,716

Special Account expenses:Other Services - Services for Other Government and Non-Government Bodies 144 10,629 15,871 15,828 15,828

Program Support 8,501 7,823 7,954 8,572 9,091


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National Rental Affordability Scheme

• Cumulative number of planned NRAS incentives that have been allocated

• Number of NRAS dwellings available for rental Program 2.1 key performance indicators

• Proportion of low or moderate income NRAS households in rental stress

• Proportion of NRAS dwellings tenanted by low or moderate income households

• Proportion of NRAS dwellings available for rent

• Proportion of NRAS dwellings tenanted by Indigenous households3

3 This additional performance indicator is included to ensure that data reported on includes Indigenous tenants.

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Program 2.2: Housing Assistance and Homelessness Prevention


To provide financial incentives to increase the housing supply and provide rental subsidies for low and moderate income households, and to fund homelessness prevention initiatives to reduce the impact of homelessness.


Housing Affordability Fund

To provide funding to state and local government authorities and partners to reform planning and regulatory processes and reduce some housing infrastructure costs to increase the supply of housing for home buyers.

Homelessness Prevention

To provide funding to support innovative prevention and early intervention initiatives to reduce homelessness and its impact, particularly on families and young people.

Rent Assistance

To make payments to low and moderate income Australians receiving income support or family payments to assist with the costs of renting private and community housing.

Linked to: Payments under the National Affordable Housing Agreement, the National Partnership Agreement on Homelessness, the National Partnership on Nation Building and the National Partnership Agreement on Social Housing are made by the Treasury. For information about those payments, refer to the Treasury’s 2010–11 PB Statements and Budget Paper No. 3, Australia’s Federal Relations.

Rent Assistance is delivered by Centrelink and separately by the Department of Veterans’ Affairs (DVA). For information about the DVA delivery of this service refer to the Department of Veterans’ Affairs’ 2010–11 PB Statements: Program 1.1 Veterans’ Income Support and Allowances.

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The program expenses across the forward estimates have varied from previous estimates due to updated indexation parameters. The significant decline in funding in 2013–14 reflects the end of the Housing Affordability Fund, which provided $512 million over five years until 30 June 2013.

Table 2.2.2: Budgeted expenses for Housing Assistance and Homelessness Prevention

2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Housing Assistance andHomelessness Prevention B1 105,954 106,858 181,014 183,568 31,665

Special Account:SAAP Data and Program Evaluation Fund Special Account 3,269 - - - -

Program Support 28,495 25,921 25,674 26,746 28,335


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Rent Assistance Cash Projections

Rent Assistance is not a discrete sum of money separately payable under the law but is a supplementary payment included in the calculation of primary income support payment or Family Tax Benefit.

The following table provides cash projections for the Rent Assistance component included in the primary income support payment or Family Tax Benefit.

Table 2.2.2.1: Cash Projections for Rent Assistance 2009–10 2010–11$ ('000) $ ('000)

FaHCSIA: A New Tax System (Family Assistance) (Administration) Act 1999 Family Tax Benefit Part A 1,333,389 1,361,062

FaHCSIA: Social Security (Administration) Act 1999 Age Pension 444,344 476,963 Bereavement Allowance 86 92 Carer Payment 43,233 51,436

Disability Support Pension 456,169 466,952 Special Benefit 3,817 3,853 Widow B Pension 5 5 Wife Pension (Age) 1,266 1,209 Wife Pension (DSP) 1,774 1,617

DEEWR: Social Security (Administration) Act 1999 Austudy 27,522 27,797 Newstart Allowance 369,653 367,152 Parenting Payment (Single) 13,179 13,326 Parenting Payment (Partnered) 341 346 Partner Allowance 413 257 Sickness Allowance 5,110 5,055 Widow Allowance 20,816 19,533 Youth Allowance 153,829 160,238

DEEWR: Abstudy (Student Assistance Act 1973) 9,795 9,991

DVA: Veterans' Entitlements Act 1986 1 40,844 42,932Total cash forecasts - Whole of Government 2,925,586 3,009,816 1 Rent Assistance is paid to eligible service pension and income support supplement recipients.

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COAG



Housing Affordability Fund4

• Proportion of dwelling/lots sold that deliver the purchase price reductions required under Housing Affordability Fund project funding agreements5

Homelessness Prevention

• Proportion of clients reporting an improved situation after assistance from homelessness prevention programs6

Rent Assistance7, 8

• Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance

• Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance9

• Proportion of clients assisted who are Aboriginal or Torres Strait Islander



4 Two performance indicators, one on goals and one on completion certificates, have been deleted as they represent program information generally rather than performance against the program objective.

5 This performance indicator is included because it better reflects performance measurability against the program objective.

6 This new indicator has been included to better measure the outcomes achieved by government-funded programs in supporting people experiencing homelessness.

7 The key performance indicator for ‘payment accuracy’ for Rent Assistance has been deleted as there is no data available to enable reporting against it. The 2008–09 figure was extrapolated from a one-off series of random sample surveys of recipients of Rent Assistance in 2005–06 and 2006–07. Currently, there are no plans to repeat the one-off sampling exercise.

8 One performance indicator from 2008–09 has been amended and inserted as a program deliverable, for which it is better suited.

9 The wording for this performance indicator has changed to more accurately reflect the data reported. There is no change to the data reported from previous years.

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Outcome 3: Community Capability and the Vulnerable

Improved capacity for vulnerable people and communities to participate economically and socially and to manage life-transitions through payments, targeted support services and community capability building initiatives.

Outcome 3 strategy

Community programs complement the income support system by providing pathways to economic participation and services for those in greatest need. Service strategies provide a continuum of care, supporting people and enhancing the community sector’s ability to respond to increased demand as a result of events, including the global financial crisis and natural disasters.

Vulnerable individuals and families are supported to build financial capability and resilience through a range of assistance, including income management, emergency relief, financial counselling, money management information and education and information about saving for retirement. Key target groups for assistance include people with low incomes, those subject to income management and people in financial stress.

FaHCSIA provides grants and assistance to community organisations to help them respond to identified community issues, build service delivery partnerships, support volunteers and build sector capacity. Through the National Compact, FaHCSIA aims to reduce red tape and enhance the Government’s commitment to building stronger relationships with the not-for-profit sector.

FaHCSIA assists people and communities affected by natural disasters through financial assistance, such as the Australian Government Disaster Recovery Payment. Other forms of assistance include funeral/memorial assistance and income recovery subsidies.

FaHCSIA also provides assistance to people in severe financial hardship who are not eligible for any other type of payment and have no other means of support or capacity to earn a sufficient livelihood, through the payment of Special Benefit.

Income Management

Welfare payments reform measures are designed to create a welfare system based on the principles of engagement, participation and responsibility, while building financial management and budgeting skills for individuals and families. The Government has provided $350.9 million over four years from 2009–10 to 2012–13 to implement a new broadened scheme of income management across the whole of the Northern Territory as a first step towards a national rollout to further disadvantaged locations. The new scheme will apply income management to some long-term recipients of working age payments and vulnerable people, including parents referred by child protection

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Income management in cases of child neglect and by voluntary choice – continuation of trial



Table 2.3: Budgeted expenses and resources for Outcome 3 Outcome 3: Community Capability and the Vulnerable 2009–10 2010–11


expenses$'000 $'000

Program 3.1: Financial ManagementAdministered expenses





Program 3.2: Community InvestmentAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 68,136 72,590Departmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 21,091 19,178Revenues from independence sources (s. 31) 723 708Expenses not requiring appropriation in



Program 3.3: Income Support for Vulnerable PeopleAdministered expenses

Special Appropriations 68,501 75,718Departmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 1,238 853Revenues from independent sources (s. 31) 42 42Expenses not requiring appropriation in



Program 3.4: Support for People in Special CircumstancesAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 8,114 1,347Special Appropriations 64,942 25,287



Subtotal for Program 3.4 78,071 30,069 Continued on next page.

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Table 2.3: Budgeted expenses and resources for Outcome 3 (continued) Outcome 3: Community Capability and the Vulnerable 2009–10 2010–11


expenses$'000 $'000

Program 3.5: Supplementary Payments and Support forIncome Support RecipientsAdministered expenses






Ordinary Annual Services (Appropriation Bill No. 1) 195,296 207,577Special Appropriations 426,526 113,934Special Accounts 157,381 168,190




2009–10 2010–11Average staffing level (number) 302 310 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Program 3.1: Financial Management


To improve the financial knowledge, skills, capabilities and financial resilience of vulnerable individuals and families to alleviate the immediate impact of financial stress, and to coordinate a national approach to reduce problem gambling.


Financial Management Information and Assistance

To improve the financial resilience of vulnerable individuals and families through financial counselling, information and education, crisis assistance and asset-building incentives such as matched savings and low-interest loans, and finding ways to minimise the impacts of problem gambling.

Income Management (Special Account)

The purpose of this Special Account is to enable parents to manage their welfare payments so they are best used to feed, clothe, house and provide for the education of their children.

Linked to: Administration of the school enrolment and attendance measure is managed by the Department of Education, Employment and Workplace Relations (DEEWR). For information on this measure, refer to the DEEWR 2010–11 PB Statements.

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Table 2.3.1: Budgeted expenses for Financial Management 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Child Protection Pilot - WA B1 100 333 - - -Financial Management Information and Assistance B1 107,613 124,505 59,758 62,953 64,213Welfare Payments Reform B1 260 1,267 1,451 951 1,302

Special Account Expenses: Income Management - Special Account 157,381 168,190 194,555 198,950 203,344

Program Support 20,967 24,760 23,367 24,828 26,150

Total program expenses 286,321 319,055 279,131 287,682 295,009B1 = Annual Appropriation Bill 1 (Ordinary Annual Services) Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.




• Number of clients assisted through the Financial Management Program

Income Management

• Number of people on Income Management by category Program 3.1 key performance indicators


• Percentage and number of clients who have their immediate crisis needs met

• Percentage and number of clients with increased money management knowledge and skills

• Percentage and number of clients adhering to agreed financial management strategies to manage life transitions

Income Management10

• Amount and percentage of income managed funds spent on priority needs

10 The 2009–10 performance indicator, ‘Number of people on Income Management’, has been converted to the 2010–11 deliverable ‘Number of people on Income Management by category’.

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Program 3.2: Community Investment


To provide grants and ongoing funding to improve the responsiveness and integration of local community services to increase participation of vulnerable people in community life.

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The variations in program expenses across the forward years are driven by projected changes in indexation parameters and the impact of policy initiatives.

The relevant policy initiative is the 2008–09 Budget Volunteer Grants program—expansion to help with fuel costs, which provided $15 million over three years from 2008–09.

Table 2.3.2: Budgeted expenses for Community Investment 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Community Investment B1 67,943 71,680 68,884 70,201 71,587Disaster Preparedness B1 193 - - - -

Program Support 21,814 21,188 20,848 22,636 24,009


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• Number of individuals assisted through the Community Investment Program

• Number of individuals assisted through Volunteer Grants

• Number of individuals assisted through Volunteer Management

• Number of individuals assisted (excluding volunteers) Program 3.2 key performance indicators11,12,13

Community Investment

• Percentage and number of individuals who indicated they were satisfied with the Community Support Service

• Percentage and number of individuals assisted from Indigenous and culturally and linguistically diverse backgrounds

11 The performance indicator ‘Percentage and number of individuals and families assisted to participate in a civic or community activity’ included in the 2009–10 PB Statements has been amended to ‘Number of individuals assisted through Community Investment Program’ and inserted as a program deliverable, for which it is better suited.

12 The performance indicator ‘Percentage and number of funded projects that developed partnerships’ included in the 2009–10 PB Statements has been amended to ‘Number of individuals assisted through Volunteer Grants’ and inserted as a program deliverable, for which it is better suited.

13 The performance indicator ‘Average cost per individual directly assisted or participating (including volunteers)’ included in the 2009–10 PB Statements has been amended to ‘Number of individuals assisted through Volunteer Management’ and inserted as a program deliverable, for which it is better suited.

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Program 3.3: Income Support for Vulnerable People


To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.


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The variations in program expenses across the forward years are driven by projected changes in customer trends and indexation arrangements.

Table 2.3.3: Budgeted expenses for Income Support for Vulnerable People 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Special Appropriations:Social Security (Administration) Act 1999

Special Benefit 68,501 75,718 82,068 89,079 95,464Program Support 1,280 953 968 1,056 1,120

Total program expenses 69,781 76,671 83,036 90,135 96,584 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Payments are made through Centrelink to eligible claimants under the provisions of social security law.


Income Support for Vulnerable People (Special Benefit)

• Percentage and number of recipients on part rate due to the means test



• Duration on payment


• Agreements are in place with all service providers

• Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery providers

14 The performance indicator for ‘Proportion of recipients with activity test requirements’ has been removed, as the cohort is very small and no longer statistically significant.

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Program 3.4: Support for People in Special Circumstances


To make payments to Australians in circumstances beyond their control to support them in overcoming those circumstances and maintaining their financial wellbeing.


Bereavement Allowance

To make payments for up to 14 weeks to a recently widowed person following the death of their partner to enable them to maintain an adequate standard of living during that time.

Australian Government Disaster Recovery Payment

To make immediate, one-off payments to individuals and families adversely affected by major disasters to support their recovery needs, where authorised by the Minister for Families, Housing, Community Services and Indigenous Affairs.

Payments under Special Circumstances

Payments under Special Circumstances include Act of Grace payments made under section 33 of the Financial Management & Accountability Act 1997 and ex gratia payments to individuals and families affected by disasters and other crises.


National Disaster Recovery Relief arrangements are administered through the Attorney-General’s Department. For further information, refer to that department’s 2010–11 PB Statements.

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The variations in program expenses across the financial years are driven by one-off funding for:

• the Victorian bushfires in 2009

• the mid-North Coast New South Wales floods in 2009

• the Samoan tsunami and Sumatran earthquakes in 2009

• the Western Australian bushfires in December 2009

• the Victorian storms in March 2010

• the south-west Queensland floods in March 2010.

The change also reflects projected changes in customer trends and indexation parameters for Bereavement Allowance.

Table 2.3.4: Budgeted expenses for Support for People in Special Circumstances 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000Annual Administered Expenses:

Payments under Special Circumstances B1 8,114 1,347 1,357 1,367 1,378


Australian Government DisasterRecovery Payment 61,650 21,775 20,169 20,169 20,169Bereavement Allowance 3,292 3,512 4,235 5,628 6,772

Program Support 5,015 3,435 3,491 3,841 4,071

Total program expenses 78,071 30,069 29,252 31,005 32,390 B1 = Annual Appropriation Bill 1 (Ordinary Annual Services). Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Bereavement Allowance / Payments under Special Circumstances

• Payments are made through Centrelink to eligible claimants under the provisions of social security law and the Financial Management and Accountability Act 1997.


Bereavement Allowance / Payments under Special Circumstances



Bereavement Allowance / Australian Government Disaster Recovery Payment

• Timeliness of receipt of assistance

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Program 3.5: Supplementary Payments and Support for Income Support Recipients


To make payments and subsidise services to certain income support recipients to assist them financially and to help them continue to participate economically and socially.


Reimbursement to Great Southern Rail Authority for Concessional Fares

To reimburse Great Southern Rail for the provision of concessional fares on its services (the Indian Pacific, the Ghan and the Overland) to pensioners, certain veterans and holders of the Commonwealth Seniors Health Card and state Seniors Card holders.

Utilities Allowance



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The variations in program expenses across the forward years are driven by the replacement of the Utilities Allowance with the Pension Supplement and one-off funding for the communications campaign for the Secure and Sustainable initiatives announced in the 2009–10 Budget.

From 20 September 2009, the Utilities Allowance has been paid only to DSP recipients under the age of 21.

Table 2.3.5: Budgeted expenses for Supplementary Payments and Support for Income Support Recipients


Annual Administered Expenses:Reimbursement to Great SouthernRail for Concessional Fares B1 8,148 8,445 8,678 8,445 8,655Secure and Sustainable Pensions -communications campaign B1 2,925 - - - -


Utilities Allowance 293,083 12,929 13,278 13,699 14,325Program Support 1,530 1,189 1,209 1,318 1,398


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Reimbursement to Great Southern Rail for Concessional Fares

• Great Southern Rail is under agreement to provide concessional fares on its services to pensioners, certain veterans and holders of Commonwealth Seniors Health Card and state Seniors Card holders.

Utilities Allowance

• Payments are made through Centrelink to eligible claimants under the provisions of social security law.


Reimbursement to Great Southern Rail for Concessional Fares



• Number of journeys

Utilities Allowance15



15 The measure of payment accuracy for this payment will be derived from the relevant primary payment.

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Outcome 4: Seniors

An adequate standard of living and improved capacity to productively manage resources and life-transitions for senior Australians through the delivery of payments, concessions and information services.

Outcome 4 strategy

FaHCSIA’s key strategy under Outcome 4 is the payment of the Age Pension and supplements to those senior Australians who are unable to fully support themselves. Around four out of five Australians of Age Pension age receive the Age Pension or other income support. Key drivers of Age Pension expenditure are demographic change, economic conditions (such as inflation and wages growth) and the impact of policy initiatives. The most recent Intergenerational Report acknowledges the ongoing challenges these demographic trends present into the future.

The Australian Government continues to assist senior Australians through the provision of concession cards, including the Pensioner Concession Card, the Health Care Card and the Commonwealth Seniors Health Card. These cards provide cardholders with access to Pharmaceutical Benefits Scheme prescription items and certain Medicare services at a cheaper rate.

The Australian Government contributes some funding towards selected state-based concessions through a National Partnership arrangement. The arrangement contributes funds towards certain specified concessions that the states must provide to Pensioner Concession Card holders without discrimination and funds for the states to provide public transport concessions to out-of-state Seniors Card holders.

Seniors are also able to access the Financial Information Service provided by Centrelink.

The Broadband for Seniors initiative is establishing a network of internet kiosks in locations frequented by seniors to address barriers that limit seniors’ capacity to access the information and community resources needed to remain involved in social and community activities.

The Secure and Sustainable Pension Reform package has been implemented, and most components commenced from 20 September 2009. Some 2.1 million age pensioners have benefited from the improvements introduced as part of the package, which included better indexation of payments, higher rates of payment and better targeting of assistance. Many people who cannot qualify for the Age Pension due to the level of their private resources receive some assistance through the Seniors Supplement introduced as part of the package. Around 270,000 Commonwealth Seniors Health Card holders have benefited from the Seniors Supplement, which is available to card holders to assist with household expenses. It combines the former Seniors Concession Allowance and the higher rate of Telephone Allowance.

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Table 2.4: Budgeted expenses and resources for Outcome 4 Outcome 4: Seniors 2009–10 2010–11


expenses$'000 $'000

Program 4.1: Income Support for SeniorsAdministered expenses

Special Appropriations 29,420,023 31,948,889Departmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 18,615 17,942Revenues from independent sources (s. 31) 638 625Expenses not requiring appropriation in



Program 4.2: Allowances, Concessions and Services for SeniorsAdministered expenses











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Program 4.1: Income Support for Seniors


To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life-transitions.


Age Pension

To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life-transitions.

Widow B Pension

To make payments to widowed, divorced and separated women to assist them financially. (This payment was closed to new entrants from 20 March 1997.)

Wife Pension (Age)

To make payments to female partners of Age Pension recipients, where those partners are not eligible in their own right for Age Pension, to assist them financially. (This payment was closed to new entrants from 1 July 1995.)

Linked to: Personal benefits payments under this program are delivered by Centrelink and separately by the Department of Veterans’ Affairs (DVA). For information about the DVA delivery of this service, refer to DVA’s 2010–11 PB Statements: Program 1.1 Veterans’ Income Support and Allowances.

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The variations in program expenses across the forward years are driven by changes in the economy, demographic change, indexation and deeming arrangements and the impact of policy initiatives, including the Secure and Sustainable Pension Reform package.

The Widow B Pension and Wife Pension (Age) programs are closed payments with no new claimants.

Table 2.4.1: Budgeted expenses for Income Support for Seniors 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000


Age Pension 29,269,001 31,809,514 33,825,196 36,412,207 38,423,394Widow B Pension 7,459 7,530 7,222 7,381 7,089Wife Pension (Age) 143,563 131,845 123,481 114,810 111,911

Program Support 19,253 19,785 19,121 20,651 21,329

Total program expenses 29,439,276 31,968,674 33,975,020 36,555,049 38,563,723 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Age Pension / Widow B Pension / Wife Pension (Age)




Age Pension

• Ratio of assessed income of pensioners to their total income

• Percentage and number of senior Australians who receive payment

• Percentage and number of recipients with employment income16

• Percentage and number of new entrants with employment income



• Strategies are in place to ensure that the requirements are fulfilled under agreements with providers

Wife Pension (Age)

• Ratio of current number of Wife Pension (Age) recipients to the number of Wife Pension (Age) recipients at 1 July 1995

16 The wording for this performance indicator has changed to more accurately reflect the data reported. There is no change to the data reported from the previous years.

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Program 4.2: Allowances, Concessions and Services for Seniors


To make payments and provide services to senior Australians to assist with household expenses, enabling them to maintain their standard of living and increase access to information and community resources.


Seniors Supplement

To make payments to senior Australians to assist with household and other living expenses.

Broadband for Seniors

To establish a network of internet kiosks in locations frequented by seniors to address barriers that limit seniors’ capacity to access the information and community resources needed to remain involved in social and community activities.

Linked to: Personal benefits payments under this program are delivered by Centrelink and separately by the Department of Veterans’ Affairs (DVA). For information about the DVA delivery of this service, refer to DVA’s 2010–11 PB Statements: Program 1.1 Veterans’ Income Support and Allowances.

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The variations in program expenses across the forward years are driven by projected changes in demographics, indexation parameters and the impact of policy initiatives.

The relevant policy initiatives include the 2009–10 Budget Secure and Sustainable Pensions—new Seniors Supplement and the 2008–09 Budget Broadband for Seniors measure. The Seniors Concession Allowance and Telephone Allowance for Commonwealth Seniors Health Card holders were combined into a Seniors Supplement from 20 September 2009. Under the Australian Government’s Broadband for Seniors initiative, $15 million is being invested over three years from 2008–09 to install up to 2,000 free internet kiosks for seniors across the country.

Table 2.4.2: Budgeted expenses for Allowances, Concessions and Services for Seniors


Annual Administered Expenses:Broadband for Seniors B1 5,000 4,995 - - -


Seniors Concession Allowance 35,069 - - - -Seniors Supplement 131,961 183,591 193,988 212,219 224,166Telephone Allowance for Commonwealth Senior Health CardHolders 9,081 - - - -

Program Support 5,667 5,129 5,216 5,696 6,042


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Payments

• Payments are made through Centrelink to eligible claimants under the provisions of social security law


• Number of seniors’ internet kiosks established


Seniors Supplement




• Percentage and number of seniors’ internet kiosk users reporting improved skills and confidence in using the internet

• Number of seniors using an internet kiosk

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Outcome 5: Disability and Carers

An adequate standard of living, improved capacity to participate economically and socially and manage life-transitions for people with disability and/or mental illness and carers through payments, concessions, support and care services.

Outcome 5 strategy

Outcome 5 encompasses the provision of income support payments and support services to people with disability and their carers, including the Disability Support Pension (DSP), Carer Allowance and Carer Payment.

FaHCSIA funds a number of services for people with disability and their carers, including supported employment services, advocacy, community mental health services, support services for children with autism spectrum disorder, and respite services.

Under the targeted community care program, community-based mental health services seek to improve the capacity of individuals, families and carers affected by mental illness to participate socially and economically. This is achieved through: supporting individuals on their recovery journey by improving life skills and quality of life; building the resilience of families (including children and young people) through increased skills and knowledge; and supporting carers to maintain their caring role.

Long-term challenges for these programs include an ageing population, improving outcomes for specialist and mainstream services, and supporting social and economic participation.

Reform of the disability services sector is continuing, and FaHCSIA is working closely with the state and territory governments on 10 key priority areas under the National Disability Agreement. An inquiry into a national long-term care and support scheme, including the feasibility of a no-fault social insurance approach, is being undertaken by the Productivity Commission, which is due to report to the Government in July 2011. The National Disability Strategy will set an overarching vision, establish policy priorities and improve the performance of mainstream services in meeting the needs of people with disability. FaHCSIA is working closely with the Department of Health and Ageing and state and territory governments to develop the National Carer Recognition Framework. The Carer Recognition Bill 2010 will recognise in law the role and contribution of Australia’s carers. The National Carer Strategy will shape the agenda for reform and guide policy development and the delivery of services by government agencies and non-government organisations that work with carers, including young carers. This budget also provides additional assistance to disability and carer groups to ensure that people with disability, their families and carers have an opportunity to participate in consultations for the National Disability Strategy, the National Carer Strategy and the Productivity Commission inquiry.

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The Government’s Secure and Sustainable Pensions Reform package considered the needs of carers and people with disability in reforming the pension system and included Carer Payment, DSP and related payments. Pensioners on the adult rates of these payments will generally benefit from increased payment rates, the new Pension Supplement and new indexation arrangements.

The Government provides ongoing support to carers of both adults and children through the provision of Carer Payment and Carer Allowance. In addition, carers of children under 16 years of age receiving Carer Allowance also receive the annual $1000 Child Disability Assistance Payment. As part of the Secure and Sustainable Pensions package a new payment, Carer Supplement, was introduced and paid for the first time in June 2009. Carer Supplement is an annual payment of $600 to those receiving Carer Allowance for each person being cared for, as well as an additional $600 to those in receipt of Carer Payment or other equivalent. Carer Supplement will be paid each July from 2010.

From 1 July 2009, significant changes were introduced to improve access to Carer Payment for those caring for a child under 16 years of age. These included a new qualification criterion based on care required and provided, improved access for carers of a child with a terminal condition, access for carers of a child with ‘short term’ or ‘episodic’ conditions, more generous arrangements for carers of a child in hospital, and automatic qualification for Carer Allowance based on qualification for Carer Payment in respect of a child aged under 16 years.

From 1 July 2010, qualification for Carer Allowance for carers of a child under 16 years of age with disability will change. The List of Recognised Disabilities will be retained and remain the first test for qualification for Carer Allowance. For those carers whose child’s condition is not listed on the List of Recognised Disabilities, the Disability Care Load Assessment (Child)—the assessment now used to determine qualification for Carer Payment (Child)—will be used to determine qualification for Carer Allowance (Child) creating a single assessment process across Carer Payment and Carer Allowance (for children). This will reduce the administrative burden on carers who apply for the two payments, as their child will only need to be assessed once. Carer Allowance (Child) will continue to be payable to a carer who has qualified for Carer Allowance before the child turns 16, for a period of up to three months after the child turns 16, to allow them time to test their eligibility for Carer Allowance (Adult).

Job Capacity Assessment – more efficient and accurate assessments for Disability Support Pension and employment services

More needs to be done to encourage people with disability to participate in community life, the key to which is supporting those who can participate to maintain their attachment to the labour market. To this end, the Government will refine the assessment processes that determine eligibility for the DSP to have a greater focus on a person’s potential to work with appropriate capacity building and rehabilitation. The assessments will also give greater consideration to the person’s transferrable skills,

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suitability for alternative employment with reasonable adjustment, and capacity to benefit from vocational training. Claimants who do not have sufficient evidence to demonstrate that they cannot be assisted back to work will have their DSP claim rejected and will instead be referred to an employment service to build their capacity. Claimants who are clearly unable to work will not be affected, including those with profound disability, serious medical conditions or terminal illness.

Changes to the assessment process for DSP will coincide with the planned implementation of revised DSP impairment tables (the tables are currently being reviewed). Also, responsibility for job capacity assessments, which are used to determine eligibility for DSP, will move from the Department of Education, Employment and Workplace Relations to FaHCSIA, so that all DSP-related policy will be in the one place.

Along with these changes, other elements of the Better and Fairer Assessments Measures, announced in the 2009–10 Budget, will be implemented from 1 July 2010. This includes improving the assessment processes that determine eligibility for DSP so that those people who are manifestly eligible have their claims determined as quickly as possible. As part of these measures, DSP assessments will be undertaken by senior job capacity assessors (DSP assessors), who will be supported by specialist medical and rehabilitation advice from a Centrelink Health Professional Advice Unit and treating doctors. DSP assessors will also have access to better information about work and employment service history. Updated work capacity guidelines for assessors will be introduced that help ensure that both medical impairment and work capacity determine the threshold for entry to DSP. There will also be a pilot focused on workforce re-engagement contacts for new entrants to DSP. The pilot will outline the assistance and incentives available to help those who may be able to work and will advise DSP customers, when they take up work, about the assistance available to help them maintain that work.

Special Disability Trusts – greater accessibility

Special Disability Trusts were introduced in 2006 to assist families wishing to make private financial provision for the current and future care and accommodation needs of a family member with severe disability without being affected by social security rules on means testing or gifting. The Government responded to recommendations made by the Senate Standing Committee on Community Affairs in its report, Building trust: Supporting families through Disability Trusts, by removing some of the barriers in taxation arrangements. It has also removed additional barriers that prevent families from establishing Special Disability Trusts, including by:

• allowing beneficiaries to work up to seven hours a week and still qualify for a Special Disability Trust

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•

•

Community engagement strategy for people with disability

New residency rules for Disability Support Pension



Table 2.5: Budgeted expenses and resources for Outcome 5 Outcome 5: Disability and Carers 2009–10 2010–11


expenses$'000 $'000

Program 5.1: Targeted Community CareAdministered expenses





Program 5.2: Disability Support PensionAdministered expenses

Special Appropriations 11,868,843 12,912,632Departmental expenses




Program 5.3: Income Support for CarersAdministered expenses





Program 5.4: Services and Support for People with Disability Administered expenses




Subtotal for Program 5.4 341,047 351,189 Continued on next page.

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Table 2.5: Budgeted expenses and resources for Outcome 5 (continued) Outcome 5: Disability and Carers 2009–10 2010–11


expenses$'000 $'000

Program 5.5: Support for CarersAdministered expenses






Ordinary Annual Services (Appropriation Bill No. 1) 458,881 468,564Special Appropriations 15,945,073 18,011,137Special Accounts 1,331 1,006





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Program 5.1: Targeted Community Care


To implement community mental health initiatives to assist people with mental illness and their families and carers.


Mental Health

To implement community mental health initiatives to assist people with mental illness and their families and carers to manage the impact of mental illness.

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The variations in program expenses across the forward years are driven by indexation arrangements and the impact of policy initiatives.

Table 2.5.1: Budgeted expenses for Targeted Community Care 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Mental Health B1 140,428 143,083 142,382 144,943 147,698

Program Support 11,980 11,137 11,325 12,023 12,752


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Mental Health

• Percentage and number of clients, families and carers whose lives are affected by mental illness accessing support services


Mental Health

• Percentage and number of clients, families and carers maintaining progress against individual goals18

• Percentage and number of clients who report that they are satisfied that the service they received was appropriate to their needs

• Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds

17 The following performance indicators from the 2009–10 PB Statements do not appear in the 2010–11 PB Statements as they have been collapsed into a single deliverable to reflect the three service strategies as one program:

—Percentage and number of people accessing recovery support services whose lives are severely affected by mental illness

—Percentage and number of families and carers assisted through respite, brokerage and community-based support.

18 This performance indicator has been included in the 2010–11 PB Statements to facilitate the measurement of intermediate outcomes.

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Program 5.2: Disability Support Pension


To make payments to eligible people with disability who are unable to achieve financial independence through sustained, mainstream employment.

Program 5.2 has no program components.

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The changes to program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives.

The strong increase between 2009–10 and 2010–11 is mostly attributed to an increase in customers during the economic downturn and is not expected to continue at the same level across the forward years.

The 2010–11 Budget initiative, Job Capacity Assessment – more efficient and accurate assessments for Disability Support Pension and employment services, commences on 1 July 2011 and is expected to reduce growth from 2011–12.

Table 2.5.2: Budgeted expenses for Disability Support Pension 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forward

budget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000


Disability Support Pension 11,868,843 12,912,632 13,381,136 13,886,196 14,296,696Program Support 15,418 14,830 15,052 15,519 16,035

Total program expenses 11,884,261 12,927,462 13,396,188 13,901,715 14,312,731 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Disability Support Pension

• Duration on payment

• Percentage and number of recipients reporting employment income19







• Percentage and number of estimated population of people with disability who receive payment

• Percentage and number of Disability Support Pension population as proportion of the total Australian working age population

19 The wording for this performance indicator has changed to distinguish income from labour force participation for people in receipt of the Disability Support Pension.

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Program 5.3: Income Support for Carers


To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition or of people who are frail aged.


Ex gratia payments to unsuccessful applicants of Carer Payment (Child)

To make one-off payments to families not eligible for income support where, following a catastrophic event involving a child aged 0 to 6 years, the family is going through a period of significant adjustment as a result of the care needs of the child.

Carer Allowance (Adult)

To make payments to financially assist carers who provide daily care and attention in a private home to a person with a disability or severe medical condition.

Carer Allowance (Child)

To make payments to financially assist carers who provide daily care and attention in a private home to a child under 16 years with disability or severe medical condition.

Child Disability Assistance Payment

To make payments annually to Carer Allowance (Child) recipients to help them purchase appropriate assistance for their family.

Carer Payment

To make payments to financially assist carers whose caring responsibilities for people with disability, frailty because of age or a severe medical condition severely restrict their ability to undertake paid employment.

Carer Supplement

To make payments annually to eligible carers to provide additional financial security and alleviate financial pressures.

Wife Pension (DSP)

To make payments to female partners of Disability Support Pension recipients to assist them financially. This payment was closed to new entrants from 1 July 1995.


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The variations in program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives, including the 2009–10 Budget initiative, Secure and Sustainable Pension Reform package.

The introduction of a new Carer Supplement was announced in the 2009–10 Budget and the first payment was made in June 2009 and ongoing payments start from 1 July 2010.

Wife Pension (DSP) is a closed payment with no new grants since 1 July 1995. Instead, people in need may qualify for other income support payments.

Table 2.5.3: Budgeted expenses for Income Support for Carers 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Ex-Gratia Payments to Unsuccessful Applicants of Carer Payment (Child) B1 2,800 2,800 2,800 - -

Special Appropriations:Social Security (Administration)Act 1999

Carer Allowance (Adult) 1,046,081 1,159,249 1,271,509 1,392,784 1,534,515Carer Allowance (Child) 427,986 458,877 489,875 521,348 558,845Carer Payment 2,272,400 2,734,226 3,158,092 3,678,454 4,236,939Carer Supplement - 438,470 474,245 502,638 543,608Child Disability Assistance Payment 152,675 156,688 162,879 169,360 176,213Wife Pension (DSP) 177,088 150,995 126,275 105,095 87,287

Program Support 11,820 11,156 11,358 12,312 12,910

Total program expenses 4,090,850 5,112,461 5,697,033 6,381,991 7,150,317 B1 = Annual Appropriation Bill 1 (Ordinary Annual Services). Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Ex gratia payments to unsuccessful applicants for Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the Financial Management and Accountability Act 1997.


Carer Allowance (Adult and Child) / Carer Payment / Child Disability Assistance Payment / Wife Pension (DSP) / Carer Supplement




Carer Allowance (Adult and Child) / Carer Payment



• Percentage and number of primary carers who are receiving payment20

Carer Payment / Wife Pension (DSP)

• Percentage and number of recipients reporting employment income

• Percentage and number of recipients on full rate and on part rate due to the means test

Wife Pension (DSP)

• Ratio of current number of Wife Pension (DSP) recipients to the number of Wife Pension (DSP) recipients at 1 July 1995

20 This indicator relies on the definition of primary carer used by the Survey of Disability and Carers.

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Program 5.4: Services and Support for People with Disability


To provide supported employment and improve access to information, advocacy and services for people with disability so they can develop their capabilities and actively participate in community and economic life.


Services for People with Disability

To provide social support and community-based care for people with disability, their carers and their families, to promote independence, self-reliance and participation in the community.

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The increase to program expenses are driven by changes in projected indexation parameters, a movement of funds between 2009–10 and 2010–11 and the impact of policy initiatives.

The 2010–11 Budget initiative, Job Capacity Assessment – more efficient and accurate assessments for Disability Support Pension and employment services, transfers responsibility for Job Capacity Assessments for DSP assessments from DEEWR to FaHCSIA from 1 July 2011.

Table 2.5.4: Budgeted expenses for Services and Support for People with Disability


Annual Administered Expenses:Services for People with Disability B1 301,257 311,369 311,253 319,105 327,444

Special Account Expenses: National Disability AgreementSpecial Account 1,331 996 876 270 278Other Services - Services for Other Government and Non-Government Bodies - 10 - - -

Program Support 38,459 38,814 39,334 42,501 45,083


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• Percentage and number of people with disability, including children with autism, receiving support services

• Percentage and number of supported employees assisted by supported employment services

• Percentage and number of carers of people with severe or profound disability assisted with short-term or immediate respite

• Percentage and number of clients receiving Outside School Hours Care for Teenagers with Disability Services


Services for People with Disability

• Percentage and number of supported employees who achieve an employment outcome (at least eight hours per week for at least 13 weeks from commencement in a supported employment place)

• Percentage and number of individuals, parents and carers who report that they were assisted to access choices and options that enabled them to manage their needs

• Percentage and number of supported employees/clients with reduced reliance on income support payments (sufficient income to affect Disability Support Pension)


• Percentage and number of clients reporting that the services received were appropriate to their needs as parents/carers

21 The 2009–10 performance indicator ‘Percentage and number of people with disability receiving support services’ has been amended and inserted as a program deliverable, for which it is better suited.

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Program 5.5: Support for Carers


To provide peer support, respite and information services for carers to help them balance their care responsibilities with social participation and, in the case of young carers, completion of their education.

Program 5.5 has no program components.

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The reduction in program expenses from 2009–10 to 2010–11 is primarily due to the implementation of the 2008–09 Budget initiative, Improved Support for Carers—Carer Specialised Assessment Teams, for which funding is to be directly appropriated to Centrelink from 1 July 2010. Increases in program estimates over the forward estimates reflect projected changes in indexation parameters.

Table 2.5.5: Budgeted expenses for Support for Carers 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Support for Carers B1 14,396 11,312 11,482 11,664 11,851

Program Support 8,494 8,459 8,473 9,294 9,857


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Young Carers

• Respite, support information, referral and advice for young carers at risk of not completing secondary education

MyTime

• Peer support for parents of children with disability or chronic medical condition Program 5.5 key performance indicators22

Support for Carers


• Number of young carers at risk of not completing secondary education assisted with respite services23

• Number of parents and carers assisted by MyTime peer support groups24

22 The performance indicator ‘Percentage and number of clients satisfied that the services they received were appropriate to their needs as carers’ has been deleted as this information is not collected.

23 This performance indicator has been included as it better reflects the objective of the program. 24 This performance indicator is no longer expressed as a proportion of those receiving Carer

Allowance (Child) six years or under as this is not a meaningful measure of the program objective.

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Outcome 6: Women

Improved gender equality through coordinated whole of government advice and support for women’s economic security, safety and status.

Outcome 6 strategy

The Office for Women delivers programs and provides policy advice and coordination across government to improve equality between women and men.

Equality benefits women and men, as well as their families and communities. Progress towards equality prevents women from falling into poverty and improves outcomes for the most vulnerable women and their families.

The Office for Women works in three priority areas: reducing violence against women; improving economic outcomes for women; and ensuring women’s equal place in society. The office also supports work across government on important issues to enhance the responsiveness of policy to the contemporary needs of women and men and to advance equality.

The Office for Women undertakes a range of work through the Gender Equality Program, including:

• initiatives that reduce violence against women and their children, with a focus on primary prevention, research, improved expert services for victims and their families, and the development and implementation of the National Plan to Reduce Violence against Women and their Children through COAG

• initiatives to build women’s capacity to take on leadership responsibilities and to improve women’s economic outcomes

• supporting women and women’s organisations to engage actively with government and to ensure that women’s needs, priorities and interests are taken into account in important policy decisions

• research into equality issues

• administration of the Support for Victims of Trafficking Program

• representing government at national and international forums, such as the United Nations, to promote equality and women’s empowerment

• whole of government leadership in policy development on equality between women and men.

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Violence against women is one of the most serious causes and consequences of continued inequality. It is one of the key risk factors for women slipping into poverty and disadvantage. The Australian Government is providing leadership to achieve a significant reduction in violence against women and their children.

Improving women’s economic outcomes is a key to achieving equality between women and men in Australia. It will also significantly boost Australia’s productivity. Modelling commissioned from the National Centre for Social and Economic Modelling by the Office for Women demonstrates that addressing the continuing gender pay gap would contribute $93 billion to the Australian economy.

A key part of the Government’s efforts to improve women’s economic security has been the review, by the Office for Women, of the effectiveness and efficiency of the Equal Opportunity for Women in the Workplace Act 1999 and the Equal Opportunity for Women in the Workplace Agency. The office is working closely with the Department of Education, Employment and Workplace Relations to develop a broad response for implementation in 2010–11.

The Gender Equality Program also funds activities to ensure women’s equal place in society. This involves giving women a voice in important policy discussions and supporting women’s leadership aspirations. In March 2010, a new model for the National Women’s Alliances was established. Work in 2010–11 will continue to support the six new alliances as the primary advocacy and consultation mechanism between the Australian Government and women’s groups. The alliances are a key part of the Government’s efforts to develop and work with the Third Sector in Australia.

The Office for Women continues to ensure that Australia is a leader internationally in promoting equality between women and men. Australia will appear before the United Nations Committee on the Elimination of Discrimination Against Women in 2010 and will be an active participant in key international forums, including the 55th session of the United Nations Commission on the Status of Women and the Asia–Pacific Economic Cooperation (APEC) Gender Focal Point Network meeting.

Recognising that a range of work across government has an effect on outcomes for women and men and on progress towards equality, the Office for Women is working to engage in key policy development and implementation work across government to promote consistent and integrated responses and to develop capacity to promote equality. For example, the office has developed, and will support, a panel of experts to provide advice across government. This work will continue to improve the effectiveness and efficiency of policy and programming.

The Office for Women continues to manage the Support for Victims of Trafficking Program as part of the Government’s anti-trafficking strategy.



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Table 2.6: Budgeted expenses and resources for Outcome 6 Outcome 6: Women 2009–10 2010–11


expenses$'000 $'000

Program 6.1: Gender Equality for WomenAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 27,475 20,805Special Accounts 105 -





Ordinary Annual Services (Appropriation Bill No. 1) 27,475 20,805Special Accounts 105 -





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Program 6.1: Gender Equality for Women


To implement strategies in priority areas to achieve gender equality. The priority areas include reducing violence against women, improving economic outcomes for women, and ensuring women’s equal place in society.


Gender Equality for Women

To implement strategies in priority areas to achieve gender equality.

Other Services—Services for other Government and Non-Government Bodies (Special Account)

To manage expenditure in connection with services performed on behalf of other governments and bodies that are not agencies subject to the Financial Management and Accountability Act 1997, including the Commonwealth, State, Territory and New Zealand Ministers’ Conference on the Status of Women.

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The variations in the budgets for program expenses across the forward years are driven by indexation arrangements, the impact of policy initiatives and a one-off movement of funds from 2008–09 to 2009–10. The movement of funds from 2008–09 to 2009–10 for the National Plan to Reduce Violence against Women and Children was approved in the 2009–10 Budget and was reflected in the 2009–10 Budget papers. Increases across the forward years from 2010–11 are driven by projected changes in indexation parameters and the impact of ongoing policy initiatives.

Table 2.6.1: Budgeted expenses for Gender Equality for Women 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Gender Equality for Women B1 27,475 20,805 20,991 21,455 21,972

Special Account Expenses: Other Services - Services for Other Government and Non-Government Bodies 105 - - - -

Program Support 14,215 13,266 13,490 16,880 17,907


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• Number of individuals contacting Helpline programs Program 6.1 key performance indicators

Gender Equality for Women

• Percentage and number of women representatives on Australian Government boards

• Assessment by stakeholders of the contribution of the Office for Women to national debates affecting gender equality

• Percentage and number of women contacting the national online and 1800 service25

25 This abridged performance indicator is fully measurable. There is no data presently available to report on the appropriateness and timeliness of referral.

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Outcome 7: Indigenous

Closing the gap in Indigenous disadvantage with improved wellbeing, capacity to participate economically and socially and to manage life-transitions for Indigenous Australians through Indigenous engagement, coordinated whole of government policy advice and targeted support services.

Outcome 7 strategy

As the lead agency in Indigenous Affairs, FaHCSIA is responsible for whole of government leadership, coordination and policy advice in relation to closing the gap in Indigenous disadvantage.

A key aspect of this responsibility is working with the states and territories, on behalf of the Commonwealth, to engage with and provide better outcomes for Indigenous Australians. The Council of Australian Governments (COAG) agreed in December 2007 to a partnership between all levels of government to work with Indigenous communities to achieve the target of closing the gap in Indigenous disadvantage. The National Indigenous Reform Agreement, agreed in November 2008, established an overarching framework for this work including policy principles, objectives and performance indicators. FaHCSIA is the lead agency responsible for coordinating Commonwealth efforts under the agreement.

In addition to its responsibilities under the National Indigenous Reform Agreement, FaHCSIA is responsible for targeted service delivery to Indigenous people under a number of Indigenous-specific and mainstream programs. The mainstream programs, which are accounted for under other outcomes, contribute significantly to closing the gap in Indigenous disadvantage. FaHCSIA is working to ensure that all its programs are fully accessible to Indigenous people, consistent with the Service Delivery Principles for Programs and Services for Indigenous Australians established in the National Indigenous Reform Agreement.

FaHCSIA is also responsible for overseeing implementation of three of the seven Indigenous-specific National Partnerships agreed by COAG:

• the National Partnership on Remote Service Delivery agreed in November 2008

• the National Partnership on Remote Indigenous Housing, first agreed in November 2008 and renegotiated in March 2010

• the National Partnership on Closing the Gap in the Northern Territory agreed in July 2009.

In 2010–11, the significant investment committed under these partnerships will fund major improvements to services for Indigenous people. The priority locations under the National Partnership on Remote Service Delivery by jurisdiction, are:

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• Northern Territory: Angurugu, Galiwinku, Gapuwiyak, Gunbalanya, Ntaria (Hermannsburg), Lajamanu, Maningrida, Milingimbi, Nguiu, Ngukurr, Numbulwar, Wadeye, Yirrkala, Yuendumu and Umbakumba

• Queensland: the Gulf communities of Mornington Island and Doomadgee and the Cape York communities of Aurukun and Hope Vale, together with continuing work in Coen and Mossman Gorge, which are part of the Cape York Welfare Reform trial

• Western Australia: Fitzroy Crossing and surrounding communities, Halls Creek and surrounding communities, and the Dampier Peninsula (with a focus on Beagle Bay and Ardyaloon)

• South Australia: Amata and Mimili in the Anangu Pitjantjatjara Yankunytjatjara Lands

• New South Wales: Walgett and Wilcannia.

FaHCSIA is the lead agency in the Commonwealth for the implementation of the National Urban and Regional Service Delivery Strategy for Indigenous Australians and the National Strategy for Food Security in Remote Indigenous Communities. FaHCSIA’s work on food security includes the development of the Food Security Strategy and the implementation of stores licensing in the Northern Territory.

FaHCSIA also contributes to ongoing work under other Indigenous-specific National Partnerships, such as the National Partnership on Indigenous Economic Participation and the National Partnership Agreement on Indigenous Early Childhood Development.

A collaborative whole of government approach to Indigenous Affairs

Working collaboratively and cooperatively across the whole of government is vital to ensuring seamless, efficient and effective delivery on the commitments made through COAG.

FaHCSIA’s national network of state offices, Regional Operations Centres and Indigenous coordination centres facilitates coordinated and customised delivery of Indigenous services and negotiation of regional and local arrangements and agreements for effective partnerships and shared responsibilities.

FaHCSIA also coordinates new Indigenous policy development across government, including through the Single Indigenous Budget Submission, and the evaluation of the impacts of existing programs and policies.

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Improved safety and wellbeing for remote communities in the Northern Territory

FaHCSIA is responsible for whole of government coordination and evaluation of the National Partnership on Closing the Gap in the Northern Territory. This partnership between the Australian and Northern Territory governments is providing $807.4 million in additional targeted funding over three years from 2009–10 to close the gap in the Northern Territory, with a particular focus on ensuring the wellbeing of women and children.

FaHCSIA works with the Northern Territory Government to implement measures in relation to remote policing, combating abuse of alcohol and other substances, community safety, supporting families, welfare reform, and governance and leadership. FaHCSIA is also the lead agency with responsibility for transitioning the Northern Territory Emergency Response measures introduced by the previous Government into a model that conforms with the Racial Discrimination Act 1975.

Improved service delivery for Indigenous people in remote communities

FaHCSIA has responsibility for major reforms to service delivery for Indigenous people in remote communities, including work under two major partnerships: the National Partnership on Remote Service Delivery and the National Partnership on Remote Indigenous Housing. These partnerships aim to establish a coordinated approach by the Commonwealth and the state and territory governments to housing and remote service delivery.

The 2010–11 Budget includes the establishment of a Remote Service Delivery National Partnership Flexible Funding Pool to meet interim needs in priority communities under the National Partnership on Remote Service Delivery. This will improve responsiveness and reduce red tape by funding projects identified as immediate community needs where there is currently no readily accessible alternative source of funding. It will play an important part in meeting the commitment to achieving objectives identified in local implementation plans agreed under the National Partnership.

Improved economic participation

FaHCSIA delivers a range of initiatives that empower Indigenous people to access and participate in the wider economy. This includes implementing the recent reforms of the Community Development and Employment Projects (CDEP) program. In 2010–11, these reforms will be extended to include CDEP program delivery in the Torres Strait. The reformed CDEP program in the Torres Strait will focus on work readiness, getting more Indigenous people into jobs that have proper remuneration and entitlements, extending local training opportunities and promoting community development.

In February 2010, the Prime Minister announced the appointment of a Government Ambassador for Business Action. FaHCSIA will support the Ambassador, engaging leaders in the private sector with Indigenous business leaders and developing new initiatives aimed at strengthening economic development in Indigenous communities.

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A better relationship with Indigenous Australians




Table 2.7: Budgeted expenses and resources for Outcome 7 Outcome 7: Indigenous 2009–10 2010–11


expenses$'000 $'000

Program 7.1: Economic Development and ParticipationAdministered expenses




Subtotal for Program 7.1 565,534 367,043Program 7.2: Indigenous Housing and InfrastructureAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 121,150 134,871Special Accounts 1,954 263



Subtotal for Program 7.2 153,429 169,137Program 7.3: Native Title and Land RightsAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 69,289 76,525Special Accounts - 45,000




Program 7.4: Indigenous Capability and DevelopmentAdministered expenses





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Table 2.7: Budgeted expenses and resources for Outcome 7 (continued) Outcome 7: Indigenous 2009–10 2010–11


expenses$'000 $'000

Program 7.5: Closing the Gap in the Northern TerritoryAdministered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 102,750 29,269Special Appropriations 4,815 2,593Special Accounts - -









2009–10 2010–11Average staffing level (number) 1,001 929 Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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Program 7.1: Economic Development and Participation


To improve the capacity of Indigenous Australians to participate in the economy.


Community Development Employment Projects Program

To strengthen Indigenous communities and support Indigenous people in remote areas through community development and participation opportunities that develop skills, improve capacity, work readiness and employability and link with local priorities.

Linked to: The Community Development Employment Projects Program works in tandem with Job Services Australia and the Indigenous Employment Program. Payments under the National Partnership Agreement on Indigenous Economic Participation are made by the Treasury. For information about those payments, refer to the Treasury’s 2010–11 PB Statements and Budget Paper No. 3, Australia’s Federal Relations 2010–11.

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The reduction in program expenses from 2010–11 to 2011–12 is due to the closure of the Indigenous Employment Special Account. Funding is to be directly appropriated to contributing agencies across the Commonwealth from 1 July 2010. Further variation in program expenses across forward years is predominantly driven by changes to indexation arrangements and the impact of policy initiatives.

Table 2.7.1: Budgeted expenses for Economic Development and Participation 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Community DevelopmentEmployment Projects Program B1 366,164 319,753 188,578 189,615 195,472

Special Account Expenses: Indigenous Employment SpecialAccount 134,209 1,510 - - -

Program Support 65,161 45,780 47,207 49,436 40,700


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COAG


Note: Individual clients may participate in a number of activities over the course of the reporting period.


Program 7.2: Indigenous Housing and Infrastructure


To improve the quality of Indigenous housing and tackle overcrowding and homelessness in remote communities.


National Programs and Projects

To deliver national programs and projects, including the Indigenous Mothers’ Accommodation Fund, the Indigenous Boarding Hostels Partnerships and the Fixing Houses for Better Health Program. In addition, funding is provided for delivery of some municipal and essential services to Indigenous communities under existing arrangements pending the consideration of roles, responsibilities and funding across governments as agreed under the National Partnership Agreement on Remote Indigenous Housing.

Linked to: Most housing assistance to Indigenous people living in non-remote areas is provided through programs that are not Indigenous-specific. For information about those programs, refer to Outcome 2.

Payments under the National Partnership Agreement on Remote Indigenous Housing, the National Partnership Agreement on Homelessness, the National Partnership Agreement on Social Housing and the National Affordable Housing Agreement are made by the Treasury. For information about those payments, refer to the Treasury’s 2010–11 PB Statements and Budget Paper No. 3, Australia’s Federal Relations 2010–11.

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The variations in program expenses across the forward years are affected by indexation arrangements, a movement of funds for the Indigenous Boarding Hostels Partnership and the cessation of current funding for municipal and essential service provision. Under the National Partnership Agreement on Remote Indigenous Housing, it was agreed with states and the Northern Territory to work towards clearer roles and responsibilities and funding for municipal and essential services and the implementation of new arrangements by 1 July 2012.

A movement of funds of $25.1 million from 2009–10 to 2010–11 ($20.1 million) and 2011–12 ($5.0 million) for the Indigenous Boarding Hostels Partnerships is included in the 2010–11 Budget.

Table 2.7.2: Budgeted expenses for Indigenous Housing and Infrastructure 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Remote Indigenous Housing B1 120,469 110,547 101,843 63,697 65,258Indigenous Boarding Hostels Partnerships B1 681 24,324 5,000 - -

Special Account Expenses: Other Services - Services for Other Government and Non-Government Bodies

1,954 263 750 750 835

Program Support 30,325 34,003 33,605 36,027 37,940


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Program 7.2 deliverables26

COAG

Program 7.2 key performance indicators27, 28


Program 7.3: Native Title and Land Rights


To support Indigenous rights to land recognised or provided for through Commonwealth land rights legislation and facilitate the representation and assistance of native title claimants and holders in the pursuit and exercise of native title rights.


Native Title

To provide representation and assistance for native title holders and claimants in their efforts to gain formal recognition of native title rights and in the exercise of those rights, through a network of funded native title representative bodies and native title service providers. (The formal recognition and exercise of native title rights can contribute to closing the gap for affected communities by facilitating greater economic and social participation.)

Land Rights

To support Indigenous rights to land recognised or provided for through Commonwealth land rights legislation.

Linked to: For other Commonwealth expenditure on the native title system, see the Attorney-General’s Department’s 2010–11 PB Statements.

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The variations in program expenses across the forward years are driven by projected changes in indexation parameters, the impact of policy and, in particular, the effect of the Native Title System—Additional Funding measure announced in the 2009–10 Budget.

Table 2.7.3: Budgeted expenses for Native Title and Land Rights 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Native Title and Land Rights B1 69,289 76,525 84,258 86,870 88,597

Special Account Expenses: Aboriginal and Torres Strait IslanderLand Fund - 45,000 45,990 47,094 48,177

Program Support 7,592 6,967 7,081 7,619 8,068


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Services under this program are demand driven, and completion rates are determined in a complex interaction with other stakeholders, often with conflicting interests. In consequence, deliverables cannot be forecast for forward years.


Native Title

• Proportion of native title claims progressed

• Proportion of native title claims concluded

• Number of future act agreements progressed and concluded

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Program 7.4: Indigenous Capability and Development


To provide engagement and support for individuals, families and communities to improve wellbeing and capability.


Indigenous Capability and Development

To deliver services that support Indigenous individuals, families and communities to improve their wellbeing and engagement with government, with a focus on leadership and capacity building and promoting Indigenous culture and knowledge, and to provide funding for independent organisations with similar objectives.

Flexible Funding

To address priority needs through flexible funding for strategic investments, including community development projects in Remote Service Delivery National Partnership priority communities and elsewhere.


To register, regulate and develop the capacity of Indigenous corporations to improve their corporate governance.

Aboriginals Benefit Account (Special Appropriation)

To administer statutory royalty equivalent monies derived from mining on Aboriginal land in the Northern Territory under the Aboriginal Land Rights (Northern Territory) Act 1976, consistent with the Financial Management and Accountability Act 1997.

Aboriginal and Torres Strait Islander Land Account

To provide a secure and ongoing source of funds to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base.

Ranger Agreement

To make payments to the Northern Land Council as a form of rental to provide access to the Ranger Project area for the purposes of mining.

Linked to: For information on the Indigenous Land Corporation, refer to the corporation’s agency resources and planned performance section in these PB Statements.

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The variations in program expenses across the forward years are driven by projected changes in indexation parameters and the impact of policy initiatives. The relevant policy initiatives are two 2009–10 Budget measures: Reconciliation Australia, which provides $10.8 million over three years from 2010–11, and Indigenous Healing Foundation, which provides $26.6 million over four years from 2009–10.

Changes in Aboriginals Benefit Account royalty equivalent revenue across the forward years are subject to the profits recorded by individual mines and to world resource prices.

Table 2.7.4: Budgeted expenses for Indigenous Capability and Development 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Indigenous Capability and Development1 B1 47,666 48,316 46,326 45,912 44,267Indigenous Healing Foundation B1 5,710 7,658 7,834 4,857 -Reconciliation Australia B1 - 3,600 3,600 3,600 -National Aboriginal and Torres Strait Islander Representative Body B1 2,952 6,234 6,795 8,341 4,911

Special Appropriations:Aboriginal Land Rights (Northern Territory) Act 1976

Aboriginals Benefit AccountSpecial Appropriation 178,619 193,987 280,962 436,480 441,414Ranger Agreement 200 200 200 200 200

Special Account Expenses: Aboriginals Benefit AccountSpecial Account 112,533 148,407 171,228 216,844 204,328Indigenous Communities StrategicInvestment 3,037 2,500 2,500 2,500 2,500

Program Support 103,108 100,665 102,295 109,279 114,765

Total program expenses 453,825 511,567 621,740 828,013 812,385 B1 = Annual Appropriation Bill 1 (Ordinary Annual Services). Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change. 1 On 11 February 2010, the Prime Minister announced the Remote Service Delivery Flexible Funding Pool

committing $46 million over three years ($17 million per annum for 2010–11 and 2011–12, and $12 million for 2012–13) to support the implementation of the National Partnership Agreement on Remote Service Delivery. This funding will be appropriated directly to the Indigenous Capability Development Program. However, the funds will be transferred to and managed through a new Special Account which, at date of publication, was not yet created.

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• Number of people who participated in Indigenous leadership programs

• Number of Indigenous Women’s Program projects

• Number of Indigenous leadership capacity development workshops held in priority communities under the National Partnership Agreement on Remote Service Delivery

• Number of Indigenous leadership capacity development workshops held in locations other than priority communities under the National Partnership Agreement on Remote Service Delivery, including national, place-based and targeted workshops

Flexible Funding

• Number of flexible funding projects


• Number of participants in corporate governance capacity development programs Program 7.4 key performance indicators


• Percentage and number of participants in Indigenous leadership programs who reported that they benefited from increased knowledge, skills and capabilities gained from their participation

• Percentage and number of Indigenous Women’s Program projects that met contractual requirements, including agreed outcomes

Flexible Funding

• Percentage and number of flexible funding projects that have met specified project objectives


• Percentage and number of Aboriginal and Torres Strait Islander corporations that are compliant with reporting requirements under the Corporations (Aboriginal and Torres Strait Islander) Act 2006

• Percentage and number of participants in corporate governance capacity development programs who have reported a significant increase in corporate governance knowledge and skills

• Percentage and number of clients satisfied that the services provided met their needs

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Program 7.5: Closing the Gap in the Northern Territory


To provide whole of government policy coordination and to implement targeted measures in relation to the National Partnership Agreement on Closing the Gap in the Northern Territory, which aims to protect women and children, improve community capacity and provide sustainable community development in prescribed communities.


Family Support Package

To protect Indigenous children from abuse and strengthen Indigenous families and communities in the Northern Territory through a coordinated approach to the provision of services to improve child development, child safety and family functioning.

Youth in Communities

To deliver a comprehensive Indigenous youth strategy in the Northern Territory, to provide an effective diversion from at-risk behaviours and to improve life choices and outcomes.

Community Stores

To enhance the contribution of community stores to achieving food security in remote communities and ensure that community stores are able to meet the requirements of the Income Management arrangements.

Linked to:

Early childhood and playgroup services are delivered under Program 1.1: Family Support.

Welfare reform is delivered under Program 3.1: Financial Management.

Leadership and community development services are delivered under Program 7.4: Indigenous Capability and Development.

Payments under the National Partnership Agreement on Closing the Gap in the Northern Territory and the National Partnership Agreement on Remote Service Delivery are made by the Treasury. For information about those payments, refer to the Treasury’s 2010–11 PB Statements and Budget Paper No. 3, Australia’s Federal Relations 2010–11.

The Closing the Gap in the Northern Territory Evaluation Strategy provides ongoing assessment to capture whole of government effort, including services delivered by the Northern Territory Government, under the National Partnership Agreement on Closing the Gap in the Northern Territory. As part of the evaluation strategy, the Australian and Northern Territory governments have agreed to conduct an independent outcome evaluation in 2011–12.

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The rental and other payments associated with the five year leases over Aboriginal land under the Northern Territory Emergency Response are expected to be finalised by 30 June 2012.

Table 2.7.5: Budgeted expenses for Closing the Gap in the Northern Territory 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Administered Expenses:Northern Territory Emergency Response B1 102,750 29,269 29,595 - -

Special Appropriations:Northern Territory National Emergency Response Act 2007

Lease Payments to TraditionalOwners of Land 4,815 2,593 2,592 - -

Program Support 80,576 90,750 90,624 7,176 -

Total program expenses 188,141 122,612 122,811 7,176 - B1 = Annual Appropriation Bill 1 (Ordinary Annual Services). Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

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• Percentage and number of priority communities with improved access to family support services through the provision of a Remote Aboriginal Family and Community Worker presence over 12 months

• Number of cases in which the Mobile Child Protection team participates over 12 months

• Percentage and number of Safe Place facilities operating in priority communities over 12 months


• Number of youth workers employed in priority communities

• Number of facilities made available for providing youth services and activities

Community Stores

• Number of community stores licensed

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Program 7.5 key performance indicators29,30,31

Closing the Gap in the Northern Territory


• Strategies are in place to ensure a coordinated approach to family support services for remote communities in the Northern Territory


• Percentage and number of priority communities with improved access to youth services

• Percentage and number of priority communities where improved facilities are made available for providing youth services and activities

Community Stores

• Percentage and number of prescribed communities served by a licensed store

29 The performance indicator ‘Percentage of residents of prescribed communities who feel safer’ was removed following agreement of Commonwealth and Northern Territory Government responsibilities under the Closing the Gap in the Northern Territory National Partnership, to be evaluated in 2011–12.

30 The performance indicator ‘Percentage and number of prescribed communities with improved infrastructure services (compared to before the intervention)’ was removed following agreement of Commonwealth and Northern Territory Government responsibilities under the Closing the Gap in the Northern Territory National Partnership to be evaluated in 2011–12.

31 The performance indicator ‘Percentage and number of participants in leadership programs who report they have acquired increased knowledge, skills and capabilities from their participation’ was removed because leadership programs under Closing the Gap in the Northern Territory are administered through Program 7.4.

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2010–11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years Administered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period with the agreement of the Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of administered funds approved between years.

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Table 3.1.1: Movement of administered funds between years 2009–10 2010–11 2011–12 2012–13 2013–14

$'000 $'000 $'000 $'000 $'000Outcome 1: Program 1.3: Parental Payments and Care IncentivesDelay in communications campaign for the introduction of the Paid Parental Leave scheme. (0.600) 0.600 - - -

Outcome 2:

Program 2.1 Affordable Housing1

The projected expenses across the forward estimates have been updated in the 2010-11 Budget following an update of the implementation phasing and the revision of the original budget assumptions. (31.016) (54.251) (50.757) (17.251) (5.543)

Outcome 3:

Program 3.1 Financial ManagementImplementation timeframes for Community Development Financial Institution pilot project. (2.678) 2.678 - - -

Outcome 5: Program 5.1 Targeted Community CareTo provide additional capacity building for carers and training and support for workforce development. (1.950) 1.950 - - -

Program 5.4 Services and Support for People with DisabilityExtended timeframes for implementation of the Autism package and National Disability Parking Scheme, combined with lower than budgeted demand for several programs, including business services temporary viability support, postal concessions for the blind and interpreter services. (12.650) 12.650 - - -

Outcome 7:

Program 7.2 Indigenous Housing and InfrastructureConstruction timeframe for Indigenous Boarding Hostels Partnerships facility in Weipa. (25.067) 20.067 5.000 - -

Total movement ofadministered funds (73.961) (16.306) (45.757) (17.251) (5.543) 1 Offsetting increases come into effect from 2019-20.

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3.1.2 Special accounts Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Department of Families, Housing, Community Services and Indigenous Affairs.

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Table 3.1.2: Estimates of special account flows and balances Opening Closingbalance Receipts Payments Adjustments balance

2010–11 2010–11 2010–11 2010–11 2010–112009–10 2009–10 2009–10 2009–10 2009–10

Outcome $'000 $'000 $'000 $'000 $'000Outcome 1Financial Management and Accountability Act 1997(s. 20)

Social Security - Services for Other Government and Non-Government Bodies (A) 1.1 223 - - - 223

223 - - - 223Outcome 2Financial Management and Accountability Act 1997(s. 20)

Other Services - Services for Other Government and Non-Government Bodies (A) 2.1 - 10,629 (10,629) - -

- 144 (144) - -SAAP Data and Program Evaluation Fund Special Account (A) 2.2 - - - - -

3,163 106 (3,269) - -Outcome 3Social Security (Administration) Act 1999

Income Management Special Account (A) 3.1 8,075 174,467 (168,190) - 14,352

2,202 163,254 (157,381) - 8,075Financial Management and Accountability Act 1997(s. 20)

Other Services - Services for Other Government and Non-Government Bodies(A) 3.1 1,000 - - - 1,000

- 1,000 - - 1,000Outcome 5Financial Management and Accountability Act 1997(s. 20)

National Disability Special Account (A) 5.4 5,388 1,000 (996) - 5,392

2,719 4,000 (1,331) - 5,388Other Services - Services for Other Government and Non-Government Bodies(A) 5.4 10 - (10) - -

- 10 - - 10 Continued on next page.

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Table 3.1.2: Estimates of special account flows and balances (continued) Opening Closingbalance Receipts Payments Adjustments balance

2010–11 2010–11 2010–11 2010–11 2010–112009–10 2009–10 2009–10 2009–10 2009–10

Outcome $'000 $'000 $'000 $'000 $'000Outcome 6Financial Management and Accountability Act 1997(s. 20)

Other Services - Services for Other Government and Non-GovernmentBodies (A) 6.1 17 - - - 17

58 64 (105) - 17Outcome 7Financial Management and Accountability Act 1997(s. 20)

Other Trust Monies (A) 7.1 - - - - -- - - - -

Indigenous Employment Special Account 7.1 13,510 - (1,510) (12,000) -

- 147,719 (134,209) - 13,510Other Services - Services for Other Government and Non-GovernmentBodies (A) 7.2 286 561 (263) - 584

306 1,934 (1,954) - 286Aboriginal and Torres Strait Islander Act 2005

Aboriginal and Torres Strait Islander Land Account(A) 7.3 1,794,752 88,564 (45,000) - 1,838,316

1,713,550 81,202 - - 1,794,752

Aboriginal and Land Rights (Northern Territory) Act 1976

Aboriginals Benefit Account - Special Account(A) 7.4 387,042 207,045 (148,407) - 445,680

305,633 193,942 (112,533) - 387,042Financial Management and Accountability Act 1997(s. 20)

Indigenous Communities Strategic Investment Program SpecialAccount (A) 7.4 - 2,500 (2,500) - -

- 3,037 (3,037) - -Continued on next page.

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Table 3.1.2: Estimates of special account flows and balances (continued) Opening Closingbalance Receipts Payments Adjustments balance

2010–11 2010–11 2010–11 2010–11 2010–112009–10 2009–10 2009–10 2009–10 2009–10

Outcome $'000 $'000 $'000 $'000 $'000Financial Management and Accountability Act 1997(s. 20)

Aboriginal and Torres Strait Islander Corporations Unclaimed MoneyAccount (A) 7.4 223 - - - 223

- 223 - - 223Financial Management and Accountability Act 1997(s. 20)

Northern Territory Flexible Funding Pool Special Account (A,D) 7.5 - - - - -

76,079 - - (76,079) -Total special accounts

2010–11 Budget estimate 2,210,526 484,766 (377,505) (12,000) 2,305,787

Total special accounts2009–10 estimate actual 2,103,933 596,635 (413,963) (76,079) 2,210,526

(A) = administered (D) = departmental

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3.1.3 Australian Government Indigenous expenditure

Table 3.1.3: Australian Government Indigenous expenditure Other Total Program

Bill Special TotalNo. 1 Approp Approp$'000 $'000 $'000 $'000 $'000

FaHCSIAOutcome 1

Families and ChildrenAdministered 2010–11 51,467 - 51,467 - 51,467 1.1Administered 2009–10 49,174 - 49,174 - 49,174 1.1Departmental 2010–11 2,998 - 2,998 - 2,998 1.1Departmental 2009–10 2,915 - 2,915 - 2,915 1.1Total Outcome 2010–11 54,465 - 54,465 - 54,465Total Outcome 2009–10 52,089 - 52,089 - 52,089Outcome 2

HousingAdministered 2010–11 2,626 - 2,626 - 2,626 2.2Administered 2009–10 2,549 - 2,549 - 2,549 2.2Departmental 2010–11 147 - 147 - 147 2.2Departmental 2009–10 141 - 141 - 141 2.2Total Outcome 2010–11 2,773 - 2,773 - 2,773Total Outcome 2009–10 2,690 - 2,690 - 2,690Outcome 3

Community Capability and the Vulnerable

Administered 2010–11 5,740 - 5,740 - 5,740 3.1Administered 2009–10 11,554 - 11,554 - 11,554 3.1Departmental 2010–11 - - - - - 3.1Departmental 2009–10 - - - - - 3.1Administered 2010–11 13,631 - 13,631 - 13,631 3.2Administered 2009–10 13,350 - 13,350 - 13,350 3.2Departmental 2010–11 1,271 - 1,271 - 1,271 3.2Departmental 2009–10 1,261 - 1,261 - 1,261 3.2Total Outcome 2010–11 20,642 - 20,642 - 20,642Total Outcome 2009–10 26,165 - 26,165 - 26,165Outcome 5

Disability and CarersAdministered 2010–11 578 - 578 - 578 5.4Administered 2009–10 624 - 624 - 624 5.4Departmental 2010–11 24 - 24 - 24 5.4Departmental 2009–10 30 - 30 - 30 5.4Total Outcome 2010–11 602 - 602 - 602Total Outcome 2009–10 654 - 654 - 654

Appropriations



Table 3.1.3: Australian Government Indigenous expenditure (continued) Other Total Program

Bill Special TotalNo. 1 Approp Approp$'000 $'000 $'000 $'000 $'000

Outcome 7Indigenous

Administered 2010–11 319,753 - 319,753 1,510 321,263 7.1Administered 2009–10 366,164 - 366,164 134,209 500,373 7.1Departmental 2010–11 39,242 - 39,242 6,538 45,780 7.1Departmental 2009–10 61,245 - 61,245 3,916 65,161 7.1Administered 2010–11 134,871 - 134,871 263 135,134 7.2Administered 2009–10 121,150 - 121,150 1,954 123,104 7.2Departmental 2010–11 30,153 - 30,153 3,850 34,003 7.2Departmental 2009–10 28,502 - 28,502 1,823 30,325 7.2Administered 2010–11 76,525 - 76,525 45,000 121,525 7.3Administered 2009–10 69,289 - 69,289 - 69,289 7.3Departmental 2010–11 6,102 - 6,102 865 6,967 7.3Departmental 2009–10 7,136 - 7,136 456 7,592 7.3Administered 2010–11 65,808 194,187 259,995 150,907 410,902 7.4Administered 2009–10 56,328 178,819 235,147 115,570 350,717 7.4Departmental 2010–11 88,526 - 88,526 12,139 100,665 7.4Departmental 2009–10 96,911 - 96,911 6,197 103,108 7.4Administered 2010–11 29,269 2,593 31,862 - 31,862 7.5Administered 2009–10 102,750 4,815 107,565 - 107,565 7.5Departmental 2010–11 80,496 - 80,496 10,254 90,750 7.5Departmental 2009–10 75,733 - 75,733 4,843 80,576 7.5Total Outcome 2010–11 870,745 196,780 1,067,525 231,326 1,298,851Total Outcome 2009–10 985,208 183,634 1,168,842 268,968 1,437,810

Total Administered 2010–11 700,268 196,780 897,048 197,680 1,094,728Total Administered 2009–10 792,932 183,634 976,566 251,733 1,228,299

Total Departmental 2010–11 248,959 - 248,959 33,646 282,605Total Departmental 2009–10 273,874 - 273,874 17,235 291,109

Total AGIE 2010–11 949,227 196,780 1,146,007 231,326 1,377,333Total AGIE 2009–10 1,066,806 183,634 1,250,440 268,968 1,519,408

Appropriations

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements Table 3.2.1 recognises the full-year revenue for 2010–11 on the basis of accrual accounting principles.

3.2.2 Analysis of budgeted financial statements Departmental

Income and expenses

FaHCSIA is budgeting for an operating deficit of $35.7 million for 2010–11. This is the result of the revised net cash funding arrangements introduced under Operation Sunlight, whereby asset replacement is now funded through a capital appropriation rather than the departmental operating appropriation. After allowing for depreciation expenses, the reconciliation table at the bottom of Table 3.2.1 shows that the operating result attributable to FaHCSIA is a balanced operating position.

Total operating revenue for 2010–11 is estimated at $552.4 million, comprising government appropriations of $525.1 million and own source revenue of $27.3 million. The decrease in revenue of $48.4 million is primarily due to the revised net cash funding arrangements introduced from 2010–11 and changes to the appropriation funding arrangements for the Community Development Employment Projects Program.

Total expenses for 2010–11 are estimated to be $588.0 million. The reduction in expenses of $12.8 million is primarily due to the revised funding arrangements for the Community Development Employment Projects Program. From 2010–11, other government agencies previously funded from the Indigenous Employment Special Account will be directly appropriated through the Budget. The increases in employee benefits reflect agreed pay rises under FaHCSIA’s collective agreement, offset by estimated reductions in average staffing levels.

Balance sheet

The Department’s net asset position is expected to increase by $1.6 million due to the impact of the operating loss of $35.7 million offset by the increase in contributed equity from the capital appropriations of $37.3 million.

Administered

Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $373.0 million in 2010–11, a decrease of $6.2 million from the 2009–10 estimated

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revenue. The decrease is due to reduced returns from investments and receipts to special accounts.

FaHCSIA will administer programs totalling $72,011.2 million in expenses in 2010–11. The increase of $4,480.2 million principally reflects customer trends and indexation of income support payments.

Balance sheet

Total assets administered on behalf of the Government are expected to increase by $196.8 million to $5,204.9 million. This is primarily due to an increase of $34.0 million in receivables and $142.1 million in investments.

Total liabilities administered on behalf of the Government are expected to increase by $75.3 million to $7,546.7 million.

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3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

Estimated Budget Forward Forward Forwardactual estimate estimate estimate estimate

2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 324,748 330,718 330,412 303,970 306,152Supplier 213,996 211,624 212,312 199,001 203,064Depreciation and amortisation 31,203 35,651 35,220 26,431 25,984Other 30,825 10,028 10,135 10,253 10,363Total expenses 600,772 588,021 588,079 539,655 545,563

LESS:OWN-SOURCE INCOMERevenueSale of goods and rendering of services 25,332 24,933 24,732 24,732 24,732Other revenue 1,017 1,017 1,017 1,017 1,017Total revenue 26,349 25,950 25,749 25,749 25,749

GainsOther gains 1,290 1,290 1,290 1,290 1,290Total gains 1,290 1,290 1,290 1,290 1,290Total own-source income 27,639 27,240 27,039 27,039 27,039

Net cost of (contribution by) services 573,133 560,781 561,040 512,616 518,524

Revenue from Government 573,133 525,130 525,820 486,185 492,540

Surplus (Deficit) - (35,651) (35,220) (26,431) (25,984)

Total comprehensive income attributable to the Australian Government - (35,651) (35,220) (26,431) (25,984)

Note: Reconciliation of operating result attributable to the agency2009–10 2010–11 2011–12 2012–13 2012–13

$'000 $'000 $'000 $'000 $'000Operating result attributable to the

Australian Government - (35,651) (35,220) (26,431) (25,984)

plus non-appropriated expensesdepreciation and amortisation expenses 35,651 35,220 26,431 25,984

Operating result attributable to theAgency - - - - -

Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forward Forward Forward

actual estimate estimate estimate estimate2009–10 2010–11 2011–12 2012–13 2013–14

$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and equivalents 5,360 5,360 5,360 5,360 5,360Trade and other receivables 115,291 116,794 116,717 110,059 110,608

Total financial assets 120,651 122,154 122,077 115,419 115,968

Non-financial assetsLand and buildings 180,764 185,328 184,924 201,291 200,658Infrastructure, plant and equipment 40,966 36,251 30,750 31,019 24,629Intangibles 52,744 54,490 54,663 59,989 56,552Other 2,895 2,895 2,895 2,895 2,895

Total non-financial assets 277,369 278,964 273,232 295,194 284,734

Total assets 398,020 401,118 395,309 410,613 400,702

LIABILITIESPayables

Suppliers 45,145 45,145 45,145 45,145 45,145Other 6,366 6,366 6,366 6,366 6,366

Total payables 51,511 51,511 51,511 51,511 51,511

ProvisionsEmployees 81,775 83,278 83,201 76,543 77,092Other 3,237 3,237 3,237 3,237 3,237

Total provisions 85,012 86,515 86,438 79,780 80,329

Total liabilities 136,523 138,026 137,949 131,291 131,840Net assets 261,497 263,092 257,360 279,322 268,862

EQUITY*Parent entity interest

Contributed equity 105,348 142,594 172,082 220,475 235,999Reserves 48,158 48,158 48,158 48,158 48,158Retained surpluses or

accumulated deficits 107,991 72,340 37,120 10,689 (15,295)Total parent entity interest 261,497 263,092 257,360 279,322 268,862

Total equity 261,497 263,092 257,360 279,322 268,862 * ‘Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2010–11)

Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward from

previous period 107,991 48,158 - 105,348 261,497Adjusted opening balance 107,991 48,158 - 105,348 261,497

Surplus (deficit) for the period (35,651) - - - (35,651)

recognised directly in equity (35,651) - - - (35,651)

Transactions with ownersContribution by owners

Appropriation (equity injection) - - - 37,246 37,246Sub-total transactions with owners - - - 37,246 37,246Transfers between equitycomponents - - - - -

Estimated closing balanceas at 30 June 2011 72,340 48,158 - 142,594 263,092


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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Goods and services 25,332 24,933 24,732 24,732 24,732Appropriations 610,031 523,627 525,897 492,843 491,991Other 1,017 1,017 1,017 1,017 1,017

Total cash received 636,380 549,577 551,646 518,592 517,740

Cash usedEmployees 321,116 329,215 330,489 310,628 305,603Suppliers 210,137 210,334 211,022 197,711 201,774Other 79,278 10,028 10,135 10,253 10,363

Total cash used 610,531 549,577 551,646 518,592 517,740Net cash from or (used by)

operating activities 25,849 - - - -

INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 70,372 37,246 29,488 48,393 15,524


investing activities (70,372) (37,246) (29,488) (48,393) (15,524)

FINANCING ACTIVITIESCash received

Appropriations - contributed equity 44,056 37,246 29,488 48,393 15,524Total cash received 44,056 37,246 29,488 48,393 15,524

Net cash from or (used by) financing activities 44,056 37,246 29,488 48,393 15,524

Net increase or (decrease)in cash held (467) - - - -Cash at the beginning of

the reporting period 5,827 5,360 5,360 5,360 5,360Cash at the end of the

reporting period 5,360 5,360 5,360 5,360 5,360 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement Estimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000

CAPITAL APPROPRIATIONSCapital Budget - Bill 1 (DCB) - 22,829 27,161 48,336 15,467Equity Injections - Bill 2 44,056 14,417 2,327 57 57Total capital appropriations 44,056 37,246 29,488 48,393 15,524

Total new capital appropriationsRepresented by:

Purchase of non-financial assets 70,372 37,246 29,488 48,393 15,524Total Items 70,372 37,246 29,488 48,393 15,524

PURCHASE OF NON-FINANCIAL ASSETSFunded by capital appropriations 44,056 14,417 2,327 57 57Funded by capital appropriations - DCB - 22,829 27,161 48,336 15,467Funded internally from

Departmental resources 26,316 - - - -TOTAL 70,372 37,246 29,488 48,393 15,524RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLETotal purchases 70,372 37,246 29,488 48,393 15,524 Total cash used to 70,372 37,246 29,488 48,393 15,524

acquire assets Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of asset movements (2010–11) Other

Infrastructure, Intangibles Total

Land BuildingsPlant &

Equipment$'000 $'000 $'000 $'000 $'000

as at 1 July 2010Gross book value 15,946 199,721 71,385 100,760 387,812

Accumulated depreciation/amortisation - (34,903) (30,419) (48,016) (113,338)Opening net book balance 15,946 164,818 40,966 52,744 274,474

CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assetsBy purchase - appropriation equity - 20,059 7,626 9,561 37,246Acquisition of entities or operations (including restructuring) sub-total - 20,059 7,626 9,561 37,246

Other Movements

Depreciation/amortisation expense - (15,495) (12,341) (7,815) (35,651)as at 30 June 2011Gross book value 15,946 219,780 79,011 110,321 425,058

Accumulated depreciation/amortisation - (50,398) (42,760) (55,831) (148,989)Closing net book balance 15,946 169,382 36,251 54,490 276,069 Prepared on Australian Accounting Standards basis.

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Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

INCOME ADMINISTERED ONBEHALF OF GOVERNMENT

RevenueNon-taxation

Interest 96,525 101,622 103,751 105,931 108,165Other sources of non-taxation

revenues 282,672 271,356 362,990 465,634 484,490Total non-taxation 379,197 372,978 466,741 571,565 592,655Total revenues administered

on behalf of Government 379,197 372,978 466,741 571,565 592,655

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTGrants 1,766,203 1,864,098 1,820,922 1,766,670 1,614,066Subsidies 8,148 8,445 8,678 8,445 8,655Personal benefits 65,332,844 69,874,937 73,525,589 77,767,597 81,460,416Suppliers 131,128 67,345 90,650 280,934 311,662Other 292,687 196,380 216,443 220,296 224,909

Total expenses administeredon behalf of Government 67,531,010 72,011,205 75,662,282 80,043,942 83,619,708


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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assetsCash and cash equivalents 23,610 44,255 49,639 46,653 44,057Receivables 1,135,502 1,169,553 1,177,377 1,191,010 1,220,411Investments 3,833,496 3,975,629 4,176,135 4,487,619 4,817,704

Total financial assets 4,992,608 5,189,437 5,403,151 5,725,282 6,082,172

Non-financial assetsOther 15,493 15,493 15,493 15,493 15,493

Total non-financial assets 15,493 15,493 15,493 15,493 15,493Total assets administered

on behalf of Government 5,008,101 5,204,930 5,418,644 5,740,775 6,097,665

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

ProvisionsPersonal benefits provision 5,664,978 5,793,034 5,909,024 6,032,790 6,164,936

Total provisions 5,664,978 5,793,034 5,909,024 6,032,790 6,164,936

PayablesSuppliers 16,156 16,156 16,156 16,156 16,156Subsidies 2,976 2,977 2,978 2,979 2,980Personal benefits payable 1,765,639 1,712,851 1,903,204 2,203,567 2,342,252Grants 14,611 14,609 14,613 14,617 14,621Other payables 7,045 7,045 7,045 7,045 7,045

Total payables 1,806,427 1,753,638 1,943,996 2,244,364 2,383,054

Total liabilities administeredon behalf of Government 7,471,405 7,546,672 7,853,020 8,277,154 8,547,990


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Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000


Interest 96,525 101,622 103,751 105,931 108,165Other 345,869 300,502 418,363 515,198 518,286


Cash usedGrant payments 1,825,166 1,925,221 1,881,308 1,827,056 1,673,025Subsidies paid 8,147 8,444 8,677 8,444 8,654Personal benefits 65,332,844 69,757,189 73,208,772 77,354,777 81,190,076Suppliers 135,362 69,421 93,457 283,741 315,896Other 292,687 196,380 216,443 220,296 224,909

Total cash used 67,594,206 71,956,655 75,408,657 79,694,314 83,412,560Net cash from or (used

by) operating activities (67,151,812) (71,554,531) (74,886,543) (79,073,185) (82,786,109)

INVESTING ACTIVITIESCash received

Investments 1,295,248 1,348,812 1,383,515 1,429,294 1,476,224Total cash received 1,295,248 1,348,812 1,383,515 1,429,294 1,476,224Cash used

Investments 1,490,870 1,490,945 1,584,021 1,740,778 1,806,309Total cash used 1,490,870 1,490,945 1,584,021 1,740,778 1,806,309Net cash from or (used

by) investing activities (195,622) (142,133) (200,506) (311,484) (330,085)

Net increase or (decrease) in cash held (67,347,434) (71,696,664) (75,087,049) (79,384,669) (83,116,194)

Cash at beginning of reporting period 23,857 23,610 44,255 49,639 46,653

Cash from Official Public Account for:

- appropriations 67,399,434 71,660,440 75,030,124 79,333,434 83,068,513Cash to Official Public Account for:

- special accounts 52,247 56,869 62,309 48,249 45,085Cash at end of reporting period 23,610 44,255 49,639 46,653 44,057


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3.2.4 Notes to the financial statements Accounting policies

Budgeted statements of income and expenditure, assets and liabilities, and cash flows have been included for the financial years 2009–10 to 2013–14. These statements are prepared in accordance with the requirements of the Government’s financial budget and reporting framework.

Amounts in these statements are rounded to the nearest thousand dollars.

Reporting entities

FaHCSIA’s budgeted financial statements include:

• the Department (FaHCSIA core)

• the Social Security Appeals Tribunal

• the Aboriginals Benefit Account

• the Aboriginal and Torres Strait Islander Land Account.

Departmental and administered Items

Departmental revenues, expenses, assets and liabilities are those that are controlled by FaHCSIA. Departmental expenses include employee and supplier expenses and other administrative costs incurred by FaHCSIA in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by FaHCSIA on behalf of the Australian Government, according to set government directions. Administered expenses include subsidies, grants and personal benefit payments.

The distinction between departmental and administered funding enables an assessment of the administrative efficiency of the Department in managing government programs.

Asset valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Commentary on the financial statements

Intangibles (departmental)

Intangibles represent the amount of computer software currently recorded by FaHCSIA. Intangible assets are recorded at cost.

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Employee provisions (departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages and superannuation payments that are owed to employees at the end of the financial year.

Receivables (administered)

Administered receivables represent amounts owing to the Australian Government for overpayments to benefit recipients. The figure presented in the financial statements is net of provisions recognised for bad and doubtful debts.

Investments (administered)

Administered investments primarily represent the investments in the Aboriginal and Torres Strait Islander Land Account.

Non-financial assets—other (administered)

Other non-financial assets items relate to estimated administered prepayments at the end of the financial year.

Personal benefits payable (administered)

Personal benefits payable relates to special appropriation amounts recognised as payables due to the timing of paydays to benefit recipients at the end of the financial year.

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EQUAL OPPORTUNITY FOR WOMEN IN THE WORKPLACE AGENCY

Section 1: Agency overview and resources...........................................................163 1.1 Strategic direction statement ........................................................................163 1.2 Agency resource statement ..........................................................................165 1.3 Budget measures..........................................................................................166

Section 2: Outcome and planned performance .....................................................167 2.1 Outcome and performance information ........................................................167


161

EOWA Budget Statements

EQUAL OPPORTUNITY FOR WOMEN IN THE WORKPLACE AGENCY


1.1 STRATEGIC DIRECTION STATEMENT

The EOWA is chartered through the Equal Opportunity for Women in the Workplace Act 1999 (the Act) with both regulatory and educative functions and responsibilities.

It is EOWA’s objective that every working woman in Australia should have the same opportunities as her male counterparts.

The Act requires relevant employers to ensure equal treatment for women, with a particular focus on the following areas:

• recruitment and selection

• promotion, transfer and termination

• training and development

• work organisation

• conditions of service

• arrangements for dealing with sex-based harassment

• arrangements for dealing with pregnancy, potential pregnancy and breastfeeding.

The Act applies to private companies, higher education institutions, non-government schools, not-for-profit organisations, community organisations, trade unions and group training schemes that have 100 or more employees.

The Act requires relevant employers to lodge a yearly report with the agency on their Equal Opportunity for Women in the Workplace program. It also requires EOWA to provide customised feedback and assistance to employers. The agency assists these organisations by providing:

• education programs and information to assist employers to improve equal opportunity for women in the workplace through linking equal opportunity

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outcomes for women with their human resource management and business priorities

• online information and educative tools to assist employers to develop workplace programs and to comply with all aspects of the Act

• recognition of leading-practice employers to inspire action.

Throughout 2010–11, EOWA will work closely with more than 7,000 relevant employers covered by the Act to improve awareness and understanding about the issues affecting women’s workforce participation. EOWA will focus on report assessment, training, research and the communications strategy, which will deliver increased awareness of equal opportunity initiatives including paid maternity leave, reducing the gender pay gap, reducing harassment, advancing merit-based opportunity and improving the quality of flexible working arrangements.

Partnerships with business will enable the agency to conduct leading-edge research and profile best practice, to provide guidance and practical solutions to equity issues to business, government and the community.

EOWA and the Equal Opportunity for Women in the Workplace Act 1999 are under review, but no outcome has been announced. While the review is underway, it is business as usual, and reporting organisations are required to submit their compliance report for the 2009–10 period.

No new measures or functions have been added since the previous Budget process.

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The agency resource statement details the resourcing for the agency at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2010–11 Budget year, including variations through Appropriation Bill (No. 3) 2010–11, special appropriations and special accounts.

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Equal Opportunity for Women in the Workplace Agency resource statement—Budget estimates for 2010–11 as at Budget, May 2010

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriationavailable in

2010–11 2010–11 2010–11 2009–10$'000 $'000 $'000 $'000

Ordinary Annual Services1

Departmental appropriationPrior year departmental appropriation2 - - -Departmental appropriation3 - 3,002 3,002 2,992s. 31 Relevant agency receipts4 - 466 466 366Total - 3,468 3,468 3,358

Total ordinary annual services A - 3,468 3,468 3,358Total resourcingA+B+C+D - 3,468 3,468 3,358Less appropriations drawn fromannual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - - -Total net resourcing for the agency - 3,468 3,468 3,358

-

1 Appropriation Bill (No. 1) 2010–11. 2 Estimated adjusted balance carried from previous year for annual appropriations. 3 s. 31 Relevant agency receipts—estimate. 4 Includes an amount of $0.252m in 2010–11 for the departmental capital budget (refer to Table 3.2.5 for

further details). For accounting purposes, this amount has been designated as ‘contributions by owners’. Note: All figures are GST exclusive.

Third-party payments from and on behalf of other agencies EOWA does not make or receive third-party payments on behalf of other agencies.

165


1.3 BUDGET MEASURES

EOWA has no measures in the 2010–11 Budget.

166

167

Section 2: Outcome and planned performance

2.1 OUTCOME AND PERFORMANCE INFORMATION

Outcome 1

Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit based opportunity

Outcome 1 strategy

•

•

•


understanding, acceptance and public discussion of equal opportunity for women in the workplace.

Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses and resources for Outcome 1 2009–10 2010–11


expenses$'000 $'000

Program 1.1:Departmental expenses

Ordinary annual services (Appropriation Bill No. 1) 2,992 3,002Revenues from independent sources (s. 31) 366 466Special appropriations - -Special Accounts - -Expenses not requiring appropriation in the Budget year - -

Total for Program 1.1 3,358 3,468

Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) - -Other services (Appropriation Bill No. 2) - -Special Appropriations - -Special Accounts - -

Departmental expensesOrdinary annual services (Appropriation Bill No. 1) 2,992 3,002Revenues from independent sources (s. 31) 366 466Special appropriations - -Special Accounts - -Expenses not requiring appropriation in the Budget year - -


2009–10 2010–11Average Staffing Level (number) 20 20

Outcome 1: Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit based opportunity

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Program 1.1 Equality of Opportunity in Employment for Women


Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit-based opportunity.

169



There are no significant trends, changes or variances in the program expenses over the forward years.

Table 2.1.1: Budgeted expenses for Equality of Opportunity in Employment for Women

2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forward

('000) budget year 1 year 2 year 3Annual Departmental Expenses:

Other Departmental - EOWA 3,406 3,576 3,443 3,404 3,427Departmental Item

Program Support - - - - -Expenses not requiring Appropriation in the Budget year - - - - -Total program expenses 3,406 3,576 3,443 3,404 3,427

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Deliverables budget year 1 year 2 year 3Overall budget 3,406 3,576 3,443 3,404 3,427Increase in women in management to 33.9% to 34.3% to 35%EOWA Census - An analysis of the progress of women in corporate leadership in ASX200 organisations

Publicise EoCFW average percentage of women in managementDiscuss with reporting clients onstrategies to implement to increase representation ofwomen in managementIncrease in paid maternity leave to 53.4% to 54.5% to 55% 55% 55%Discussion with reporting clients onbusiness benefits of increasingpaid maternity leave

EoCFW prerequisiteReduction in pay equity gap amongst Requirement of EoCFW applicants to advise of strategies in place to reduce the pay gap over timeEqual pay day to raise community awareness Updated pay equity information on the websitePartner with Fair Pay WA to aggregate resources


2009–10 2010–11 2011–12 2012–13 2013–14Key Performance Revised Budget Forward Forward ForwardIndicators budget Target year 1 year 2 year 3Workshop attendees agree or strongly agree that workshops are informative and valuable

95% 95% 95% 95% 95%

Increase in women in management 33.97% 34.30% 35% 35% 35%Increase in paid maternity leave 52.80% 53.95% 55% 55% 55%Reduction in pay equity gap amongst Employer of Choice for Women (EoCFW) organisations

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Section 3 presents explanatory tables and budgeted financial statements, which provide a comprehensive snapshot of agency finances for the 2010–11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.


3.1.1 Movement of administered funds between years EOWA does not have any administered expenses.

3.1.2 Special accounts Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Equal Opportunity for Women in the Workplace Agency.

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Table 3.1.2: Estimates of special account flows and balances Opening Closingbalance Receipts Payments Adjustments balance

2010–11 2010–11 2010–11 2010–11 2010–112009–10 2009–10 2009–10 2009–10 2009–10

Outcome $'000 $'000 $'000 $'000 $'000Other Trust Moneys Account (D) -EOWA s. 20 FMA Act Det 1997/01

1 - - - - -

Services for Other Government and Non-Agency Bodies (D) - EOWA s. 20 FMA Det 1997/01

1 - - - - -

Special Public Monies (D) 1 - - - - -

Unallocated - Special Account (D) 1 - - - - -

Total Special Accounts 2010–11 Budget estimate

Total Special Accounts2009–10 estimate actual - - - - -

(A) = administered (D) = departmental

3.1.3 Australian Government Indigenous expenditure EOWA has no 2010–11 Australian Government Indigenous expenditure to report.

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3.2.1 Differences in agency resourcing and financial statements EOWA has no differences in agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements EOWA’s income statement shows a balanced budget for 2009–10. The deficit in the forward years is a result of the net cash arrangement whereby depreciation and amortisation costs are no longer funded through government appropriation.

Employee expenses continue to increase at 4 per cent, with a marginal increase in appropriations. The cost of administering the Act, which is labour intensive, takes up much of the budget.

All information technology equipment is outsourced under a memorandum of understanding with FaHCSIA. Depreciation and amortisation expense consists principally of the reporting system and the office fit-out.

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Table 3.2.1 comprehensive income statement (showing net cost of services) (for the period ended 30 June)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 1,938 1,980 2,098 2,154 2,235Supplier expenses 1,207 1,336 1,096 1,182 1,181Grants Depreciation and amortisation 261 260 249 68 11OtherTotal expenses 3,406 3,576 3,443 3,404 3,427LESS: OWN-SOURCE INCOMERevenueSale of goods and rendering of services 366 466 366 366 366Other revenue - - - - -Total revenue 366 466 366 366 366GainsSale of assets - - - - -Other gains 48 100 44 44 44Total gains 48 100 44 44 44Total own-source income 414 566 410 410 410Net cost of (contribution by)

services 2,992 3,010 3,033 2,994 3,017

Revenue from Government 2,992 2,750 2,784 2,926 3,006Surplus (Deficit) - (260) (249) (68) (11)Surplus (Deficit) attributable to

the Australian Government - (260) (249) (68) (11)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves - - - - -Total other comprehensive income Total comprehensive income - (260) (249) (68) (11)

Total comprehensive income attributable to the Australian Government - (260) (249) (68) (11)

Note: Reconciliation of operating result attributable to the agency2009–10 2010–11 2011–12 2012–13 2012–13

$'000 $'000 $'000 $'000 $'000Operating result attributable to the

Australian Government - (260) (249) (68) (11)

plus non-appropriated itemsdepreciation, amortisation and make

good expenses 261 260 249 68 11

Operating result attributable to theagency 261 - - - -


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Cash and equivalents 174 134 439 460 471Trade and other receivables 1,659 1,652 1,300 1,232 1,221Other 20 20 20 20 20


Non-financial assetsLand and buildings 273 273 273 308 398Infrastructure, plant and equipment 6 6 4 2 2Intangibles 306 298 303 501 652Other 2 2 2 2 2

Total non-financial assets 587 579 582 813 1,054Assets held for sale - - - - -

Total assets 2,440 2,385 2,341 2,525 2,766

LIABILITIESPayables

Suppliers 82 82 82 82 82Other 133 86 39 39 39

Total payables 215 168 121 121 121

ProvisionsEmployees 232 232 232 232 232Other 157 157 157 157 157

Total provisions 389 389 389 389 389

Liabilities included in disposalgroups held for sale - - - - -

Total liabilities 604 557 510 510 510

Net assets 1,836 1,828 1,831 2,015 2,256


Contributed equity 804 1,056 1,308 1,560 1,812Reserves 40 40 40 40 40Retained surpluses or 992 732 483 415 404

accumulated deficitsTotal parent entity interest 1,836 1,828 1,831 2,015 2,256

Total equity 1,836 1,828 1,831 2,015 2,256

Current assets 1,855 1,808 1,761 1,714 1,714Non-current assets 585 577 580 811 1,052Current liabilities 504 457 410 410 410Non-current liabilities 100 100 100 100 100 * ‘Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

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reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward from 992 40 - 804 1,836

previous periodAdjustment for changes in

accounting policiesAdjusted opening balance 992 40 - 804 1,836

Comprehensive incomeComprehensive income recognised

directly in equity:Gain/loss on revaluation of - - - - -

propertySub-total comprehensive income - - - - -

Surplus (deficit) for the period (260) - - - (260)

Total comprehensive incomerecognised directly in equity (260) - - - (260)


Appropriation (equity injection)Appropriation (departmental - - - 252 252capital budget)Other

Sub-total transactions with owners - - - 252 252

Estimated closing balanceas at 30 June 2011 732 40 - 1,056 1,828


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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000


Goods and services 361 466 366 366 366Appropriations 2,648 2,757 3,136 2,994 3,017Other 30 100 44 44 -


Cash usedEmployees 1,449 1,980 2,098 2,154 2,235Suppliers 897 1,336 1,096 1,229 1,137Other (63) 47 47 - -


operating activities 756 (40) 305 21 11


Purchase of property, plant - 252 252 252 252and equipment

Total cash used - (252) (252) (252) (252)Net cash from or (used by)

investing activities


Appropriations - contributed equity (595) 252 252 252 252Total cash received (595) 252 252 252 252

Net cash from or (used by) financing activities (595) 252 252 252 252

Net increase or (decrease)in cash heldCash at the beginning of 13 174 134 439 460

the reporting periodEffect of exchange rate movements - - - - -

on cash at the beginning of reporting period

Cash at the end of the reporting period 174 134 439 460 471


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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Departmental Capital - SpecialAppropriation (Dept only) - - - - -

Capital Budget - Bill 1 (DCB) - 252 252 252 252Total capital appropriations - 252 252 252 252


Purchase of non-financial assets - 252 252 252 252Annual finance lease costsOther Items

Total Items - 252 252 252 252

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations - 252 252 252 252Funded by current year DCB1 - - - - -Funded internally from - - 795 500 -

departmental resources2

TOTAL - 252 1,047 752 252

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases - 252 252 252 252less Additions by finance lease - - - - -plus Annual finance lease costs - - - - -less Gifted assets - - - - -Total cash used to

acquire assets - 252 252 252 252 1 Does not include annual finance lease costs. 2 Includes the following sources of funding: annual and prior year appropriations; donations and

contributions; gifts; internally developed assets; s. 31 relevant agency receipts; proceeds from the sale of assets.


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Table 3.2.6: Statement of asset movements (2010–11) Land Buildings Other Intangibles Total

infrastructure,plant and

equipment$'000 $'000 $'000 $'000 $'000

As at 1 July 2010Gross book value - 509 38 996 1,543Accumulated depreciation/amortisation - (236) (32) (690) (958)Opening net book balance - 273 6 306 585CAPITAL ASSET ADDITIONSExtimated expenditure on

new or replacement assetsBy purchase - appropriation equity - - - -By purchase - appropriation ordinary annual services - 100 1 151 252By purchase - other - - - -Acquisition of entities or operations

(including restructuring) sub-total - 100 1 151 252Other movementsAssets held for sale or in a disposal

group held for saleDepreciation/amortisation expense - 100 1 159 260Other - - -As at 30 June 2011Gross book value - 609 39 1,147 1,795Accumulated depreciation/amortisation - (336) (33) (849) (1,218)Closing net book balance - 273 6 298 577

-

-

-

Note: The numbers in this table are subject to review under the Government’s net cash framework as part of the Operation Sunlight review. Prepared on Australian Accounting Standards basis.

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3.2.4 Notes to the financial statements Basis of accounting

Accounting policy

The agency budget statements have been prepared on an accrual accounting basis, having regard to the Statement of Accounting Concepts, and in accordance with:

• the Finance Minister’s Orders

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).

Departmental items

Departmental assets, liabilities, revenues and expenses are those items that are controlled by EOWA that are used by EOWA in producing its outputs, and include:

• intangible assets, plant and equipment used in providing goods and services

• liabilities for employee entitlements

• revenue and appropriations or independent sources in payments for outputs

• employee, supplier and depreciation expenses incurred in providing agency outputs.

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ABORIGINAL HOSTELS LIMITED




185

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ABORIGINAL HOSTELS LIMITED




AHL Budget Statements


Table 1.1: Aboriginal Hostels Limited resource statement—Budget estimates for 2010–11 as at Budget May 2010

Proposed Total Actualat Budget = Estimate Available

Appropriation

Source 2010–11 2010–11 2009–10$'000 $'000 $'000

Opening Balance/Reserves at Bank 1 24,833 24,833 26,467-

REVENUE FROM GOVERNMENT -Ordinary Annual Services 2 -

Outcome 1: Hostels 42,655 42,655 36,840

Other services 3

Non-Operating -Equity Injections 6,920 6,920 3,790

Total Annual Appropriations 49,575 49,575 40,630

Payments from related entities 4

Grants and SubsidiesDepartment of Health and Ageing 1,800 1,800 2,413Indigenous Youth Mobility Program 6 - -

Total 5 1,800 1,800 2,889Total Funds from Government 51,375 51,375 43,519

FUNDS FROM OTHER SOURCESAccommodation Charges 9,000 9,000 8,869Interest 500 500 500Other 182 182 182Total 5 9,682 9,682 9,551

Total net resourcing for Agency 85,890 85,890 79,537

476

CRF = Consolidated Revenue Fund. 1 Cash funds built up to meet pending commitments for new hostels, such as Noongar Elders Home in

Kenwick, Western Australia, and Port Hedland Renal Dialysis Hostel, and to fund replacement of existing assets and supporting systems nearing the end of their useful life.

2 Appropriation Bill (No. 1) 2010–11. 3 Appropriation Bill (No. 2) 2010–11. 4 Funding provided by another government body. 5 This represents total revenue for other services, as shown in Table 2.1, of $11.482 million ($1.800 million

+ $9.682 million). 6 Core funding of $1.7 million to be received from DEEWR for Indigenous Youth Mobility Program (IYMP)

in 2010–11. Note: Aboriginal Hostels Limited is not directly appropriated as it is a Commonwealth Authorities and Companies Act 1997 body. Appropriations are made to the Department of Families, Housing, Community Services and Indigenous Affairs and are then paid to Aboriginal Hostels Limited, and are considered ‘departmental’ for all purposes. All figures are GST exclusive.

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1.3 BUDGET MEASURES

Table 1.2: Agency 2010–11 Budget measures Program 2009-10 2010-11 2011-12 2012-13 2013-14

$'000 $'000 $'000 $'000 $'000Capital measuresAboriginal Hostels Limited — upgrades and repairs 1.1

Administered capital - - - - -Departmental capital - 6,920 - - -

Total - 6,920 - - -Total capital measures

Administered - - - - -Departmental - 6,920 - - -

Total - 6,920 - - -Prepared on a Government Financial Statistics (fiscal) basis.

1.1, 1.2




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of Aboriginal Hostels Limited in achieving government outcomes.

Outcome 1: Aboriginal Hostels Limited

Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services.

Outcome 1 strategy

AHL will set targets in five major areas of activity in 2010–11. This will complement the work being done through the Ernst & Young Reform Agenda.

Management and partnerships

AHL will continue to work with government, business and communities to help close the gap in education, employment, health, homelessness and other services, which will assist in improving Indigenous quality of life through the delivery of appropriate hostel accommodation.

AHL will also seek relationships with educational bodies to increase Indigenous student and employment participation and with health organisations to improve Indigenous education, employment and health outcomes.

Access services for Indigenous Australians

In 2010–11, AHL will continue to build on previous strategies that determine those areas most in need of accommodation support, with a particular emphasis on implementing strategies that close the gap. This will be supported by increased engagement with communities in order to respond to their needs.

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AHL will develop new access strategies for education, health and employment through research to determine the areas most in need and will continue to build on the new performance indicators to ensure that client outcomes are met and measured.

Marketing

AHL will continue to market the company externally by highlighting its expertise as a skilled accommodation service provider for Indigenous communities. Regional managers will build on expanding their role to include active networking and marketing of AHL to a range of service providers, including state government, local government and other relevant partners.

AHL will create a Business Development Officer position during 2010–11 to assist with seeking partnership opportunities with government and private business, while at the same time marketing AHL services.

Human resources

AHL will continue to implement efficiency measures as agreed to in its Enterprise Bargaining Agreement (approved in February 2010) and will continue to review its human resource internal systems.

Information technology

During 2010–11, AHL will implement a Hostel Management System (Booking System) at all its hostels to ensure timely production of reports for crucial decision making, and to assist in automating data collection that is currently based on manual systems. Work on the new financial system has started, and the project team is working towards a ‘go live’ date of 1 July 2010.

AHL is also refreshing its entire stock of hardware and software. This allows AHL to revisit its network design and upgrade it to align with the best industry practices to ensure that it remains current for the next 5–10 years.



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Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1 2009–10 2010–11

Estimated EstimatedActual Expenses

Expenses$'000 $'000

Program 1.1: Company owned and operated hostelsRevenue from Government

Ordinary Annual Services (Appropriation Bill No. 1) 30,440 36,255


Program 1.2: Community operated hostelsRevenue from Government

Ordinary Annual Services (Appropriation Bill No. 1) 6,400 6,400


Total revenue from Government (appropriations)contributing to price of departmental programs 36,840 42,655

Revenue from other sources

Program 1.1 - Company owned and operated hostels 12,440 11,482Program 1.2 - Community operated hostels - -

Total revenue from other sources 12,440 11,482

Total price from departmental programs(Total revenue from Government and from other sources) 49,280 54,137

Total estimated resourcing for Outcome 1(Total price of programs and administered appropriations) 49,280 54,137

2009–10 2010–11Average Staffing Level (number) 426 442 Note: Departmental appropriation splits and totals, by outcome and output, are indicative estimates and may change in the course of the budget year as government priorities change.

192



Program 1.1 Company owned and operated hostels


To provide temporary accommodation at company owned and operated hostels that assists Aboriginal and Torres Strait Islander people to achieve personal goals to obtain dignity and equity in the Australian community.

193



Newly constructed AHL hostels (Kununurra Secondary Education Hostel, Port Hedland Renal Dialysis Hostel) are resulting in increased expenditure levels.

Expenses also fluctuate due price increases for essential supplies, such as food and construction/major maintenance materials.

The contract with DEEWR for the delivery of the Indigenous Youth Mobility Program (IYMP) in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in total expenditure from 2012–13 that aligns with the reduction in the income from DEEWR for the same period.

Table 2.1.1: Budgeted expenses for Company owned and operated hostels 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forward

('000) budget year 1 year 2 year 3Program Component NameAnnual Departmental Expenses:

Departmental Item 42,879 47,736 48,064 47,396 46,983Program Support

Total Program Expenses 42,879 47,736 48,064 47,396 46,983

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The maximum number of occupancy nights available in each financial year.


Deliverables budget year 1 year 2 year 3Number of beds 1,794 1,794 1,794 1,794 1,794


• Average nightly occupancy rate as percentage of available beds in company owned and operated hostels in each financial year

• Percentage of residents who were satisfied with the accommodation and services provided

2009–10 2010–11 2011–12 2012–13 2013–14

Key Performance Revised Budget Forward Forward ForwardIndicators budget Target year 1 year 2 year 3Average occupancy level as a percentage of beds 70 70 70 70 70

Percentage of residents satisfied withaccommodation provided 75 75 75 75 75

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Program 1.2 Community operated hostels


To provide grant support for temporary accommodation at community operated hostels that assists Aboriginal and Torres Strait Islander people to achieve personal goals to obtain dignity and equity in the Australian community.

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The total grants program has been revised down to $6.4 million per year following the cessation of funding by the Department of Health and Ageing totalling $1.8 million from 1 July 2009. That department administers the grants to community operated aged care nursing homes directly from the 2009–10 financial year.

Table 2.1.2: Budgeted expenses for Community operated hostels 2009–10 2010–11 2011–12 2012–13 2013–14Revised Budget Forward Forward Forward

('000) budget year 1 year 2 year 3Program Component NameAnnual Departmental Expenses:

Departmental Item 6,400 6,400 6,400 6,400 6,400Program Support

Total Program Expenses 6,400 6,400 6,400 6,400 6,400

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The maximum number of occupancy nights available in each financial year.


Deliverables budget year 1 year 2 year 3Number of Beds 1,333 1,333 1,333 1,333 1,333


• Average nightly occupancy rate as percentage of available beds in community operated hostels in each financial year.

• Percentage of residents who were satisfied with the accommodation and services provided.

2009–10 2010–11 2011–12 2012–13 2013–14

Key Performance Revised Budget Forward Forward ForwardIndicators budget Target year 1 year 2 year 3Average occupancy level as a percentage of beds 70 70 70 70 70

Percentage of residents satisfied withaccommodation provided 75 75 75 75 75

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Section 3 presents explanatory tables and budgeted financial statements, which provide a comprehensive snapshot of agency finances for the 2010–11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.


3.1.1 Movement of administered funds between years AHL has no administered funds for 2010–11.

3.1.2 Special accounts AHL has no special accounts for 2010–11.


Table 3.1.3: Australian Government Indigenous expenditure Outcome Appropriations Other Total Program

Bill Bill TotalNo. 1 No. 2 Approp$'000 $'000 $'000 $'000 $'000

Aboriginal Hostels LtdOutcome 1Departmental 2010–11 36,255 6,920 43,175 11,482 54,657 1.1

6,400 - 6,400 6,400 1.2Departmental 2009–10 30,440 3,790 34,230 12,440 46,670 1.1

6,400 - 6,400 6,400 1.2Total Outcome 2010–11 42,655 6,920 49,575 11,482 61,057Total Outcome 2009–10 36,840 3,790 40,630 12,440 53,070

Total AGIE 2010–11 42,655 6,920 49,575 11,482 61,057Total AGIE 2009–10 36,840 3,790 40,630 12,440 53,070

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3.2.1 Differences in agency resourcing and financial statements There are no significant differences between the resource information presented in the Budget papers and Portfolio Budget Statements (PB Statements) as a result of differences between Australian Accounting Standards and Government Finance Statistics. Furthermore, there are no differences that arise because of related entity transactions.

3.2.2 Analysis of budgeted financial statements An analysis of the primary causes of movements from the financial statements published in the 2010–11 PB Statements is provided below.

Budgeted departmental income statement

This statement provides a picture of the expected financial results for AHL by identifying full accrual expense and revenues, which highlights whether AHL is operating at a sustainable level.

Total revenue

Operating income from Government has increased by $5.8 million in 2010–11 as a result of additional operating funds for Kununurra Secondary Education Hostel ($0.6 million), Townsville Renal Dialysis Hostel ($0.8 million), Port Hedland Renal Dialysis Hostel ($0.8 million), Nhulunbuy/Borroloola Secondary Education Hostels (now reallocated to Noongar Elders Home in Perth) ($1.2 million); Fire Safety and OH&S major maintenance depreciation ($1.6 million); and a net increase in ongoing operational costs of $0.8 million.

Accommodation charges have increased due to revisions of tariff rates in line with the increase in Centrelink benefits.

Other grants reflects the funding expected to be received from DEEWR through the Indigenous Youth Mobility Program (IYMP) until 30 June 2012. The contract with DEEWR for the delivery of the IYMP in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in total income from 2012–13.

Total expenses

Salaries and employee benefits—these have been increased by $1.4 million as a result of new AHL hostels in Mt Isa redevelopment, Kununurra and Townsville.

Suppliers—this includes food, materials, services and sundry expenses and the increase is reflective of new hostels and the IYMP program through DEEWR.

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Depreciation and amortisation—the higher level of depreciation expenditure flows from the acquisition costs for fire safety works across all AHL sites ($5.0 million from 2007–08 to 2009–10) and the expected additional OH&S-type major repairs totalling $6.92 million during the 2010–11 financial year.

Grants—this item represents the community hostels grants of a capital and operating nature to approved organisations to operate hostels.

The contract with DEEWR for the delivery of the IYMP in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in both total income and expenditure from 2012–13.

Budgeted departmental balance sheet

This statement shows the financial position of AHL. It helps AHL to track the management of assets and liabilities.

The major variations between estimated actuals for 2009–10 and the budget for 2010–11 in the balance sheet are as follows:

• Investment activity in non-current assets continues to increase in 2010–11 due to the capital equity injections for OH&S major maintenance at AHL hostels ($6.92 million) and Noongar Elders Home in Perth ($1.2 million).

• The cash balance reflects the nature of hostel major maintenance and construction works, as they normally take two to three years to complete. Consequently, actual payments are spread over two financial years, resulting in an increase in the cash balance in 2010–11.

• The receivables are fairly stable and include items such as GST refunds due from the Australian Taxation Office and trade debtors.

• Liabilities are expected to remain at similar level for the next three financial years.

Budgeted departmental statement of cash flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

The major variations between estimated actuals for 2009–10 and the budget for 2010–11 in the statement of cash flows are as follows:

• The increase in total cash to be received in 2010–11 is linked to the increase in appropriation and the higher level of accommodation charges collected ($3.2 million cash impact).

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• The trend in payments to suppliers and employees is in line with the comments provided under the expenses category in the income statement.

• The purchase of property, plant and equipment in 2010–11 is due to capital equity injections of $6.92 million for OH&S-type major repairs at AHL-owned hostels and the finalisation of the Kununurra Secondary Education Hostel during 2010–11.

Departmental statement of changes in equity—summary of movement

The changes in the statement of equity are a $0.001 million surplus for the 2010–11 financial year and $6.92 million in capital equity injections for the OH&S-type major repairs at AHL-owned hostels.

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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 25,869 27,312 27,262 26,823 26,589Supplier 14,060 16,103 16,095 15,866 15,687Grants 6,400 6,400 6,400 6,400 6,400Depreciation and amortisation 2,840 4,211 4,597 4,597 4,597Write-down and impairment of assets 110 110 110 110 110Finance costsOther - - - -Total expenses 49,279 54,136 54,464 53,796 53,383

LESS: OWN-SOURCE INCOMERevenueAccommodation Charges 8,869 9,000 9,427 9,427 9,427Appropriations 36,840 42,655 42,556 41,888 41,475Grants and Subsidies

Department of Health and Ageing 2,413 1,800 1,800 1,800 1,800Indigenous Youth Mobility Program 476 - - - -

Interest 500 500 500 500 500Other revenue 182 182 182 182 182Total revenue 49,280 54,137 54,465 53,797 53,384

Surplus (Deficit) 1 1 1 1 1

Surplus (Deficit) attributable to the Australian Government 1 1 1 1 1

-


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Cash and equivalents 26,467 24,833 23,585 22,338 21,090Trade and other Receivables 1,368 2,060 2,752 3,444 4,136


Non-financial assetsLand and buildings 65,364 72,864 73,058 73,252 73,446Infrastructure, plant and equipment 2,657 3,017 3,377 3,737 4,097Heritage and cultural assets 110 113 116 119 122


Total assets 95,966 102,887 102,888 102,890 102,891

LIABILITIESProvisions

Employees 3,248 3,248 3,248 3,248 3,248Total provisions 3,248 3,248 3,248 3,248 3,248

PayablesSuppliers 240 240 240 240 240

Total payables 240 240 240 240 240

Total liabilities 3,488 3,488 3,488 3,488 3,488

Net assets 92,478 99,399 99,400 99,402 99,403


Contributed equity 81,161 88,081 88,081 88,081 88,081Retained surpluses or

accumulated deficits 11,317 11,318 11,319 11,321 11,322

Total equity 92,478 99,399 99,400 99,402 99,403

Current assets 27,835 26,893 26,337 25,782 25,226Non-current assets 68,131 75,994 76,551 77,108 77,665Current liabilities 3,248 3,248 3,248 3,248 3,248Non-current liabilities 240 240 240 240 240 Prepared on Australian Accounting Standards basis.

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Retained Contributed Totalearnings equity/ equity

capital$'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward from

previous period 11,317 81,161 92,478

Surplus (deficit) for the period 1 -


Appropriation (equity injection) - 6,920 6,920

Estimated closing balanceas at 30 June 2011 11,318 88,081 99,399

1


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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000


Accomodation Charges 8,759 8,890 9,317 9,317 9,317Appropriations 36,640 41,963 41,864 42,196 41,783Grants and Subsidies 2,889 1,800 1,800 1,800 1,800Interest 500 500 500 500 500Other 2,597 2,597 2,597 2,597 2,597


Cash usedEmployees 24,841 26,252 26,202 26,144 25,910Suppliers 17,303 19,578 19,570 19,960 19,781Grants 6,400 6,400 6,400 6,400 6,400


operating activities 2,841 3,520 3,906 3,906 3,906


Purchase of property, plant and equipment 7,934 12,074 5,154 5,154 5,154

Net cash from or (used by) investing activities (7,934) (12,074) (5,154) (5,154) (5,154)


Appropriations - contributed equity 3,790 6,920 - - -Net cash from or (used by)

financing activities 3,790 6,920 - - -

Net increase or (decrease)in cash held (1,303) (1,634) (1,248) (1,247) (1,248)Cash at the beginning of

the reporting period 27,770 26,467 24,833 23,585 22,338Cash at the end of the

reporting period 26,467 24,833 23,585 22,338 21,090 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement Estimated Budget

actual estimate2009–10 2010–11

$'000 $'000

CAPITAL APPROPRIATIONSTotal equity injections 3,790 6,920Total loans - -Special appropriations - -

Total capital appropriations 3,790 6,920

Represented by:Purchase of non-financial assets 3,790 6,920Other

Total represented by 3,790 6,920

ACQUISITION OF NON-FINANCIAL ASSETSFunded by capital appropriations 3,790 6,920Funded internally from Departmental resources1 4,600 -

TOTAL 8,390 6,920 Prepared on Australian Accounting Standards basis. 1 Includes the following sources of funding: annual and prior year appropriations; donations and

contributions; gifts; finance leases; internally developed assets; s. 31 relevant agency receipts; proceeds from the sale of assets.

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Table 3.2.6: Statement of asset movements (2010–11) Other Heritage

Infrastructure, & Cultural TotalLand Buildings Plant & Equipment Assets$'000 $'000 $'000 $'000 $'000

as at 1 July 2010Gross book value 5,740 85,185 4,355 128 95,408

Accumulated depreciation/amortisation - 25,561 1,698 18 27,277Opening net book balance 5,740 59,624 2,657 110 68,131

CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

by purchase or internally developed - 11,420 650 4 12,074Sub-total - 11,420 650 4 12,074

as at 30 June 2011Gross book value 5,740 96,605 5,005 132 107,482

Accumulated depreciation/amortisation - 29,481 1,988 19 31,488Closing net book balance 5,740 67,124 3,017 113 75,994 Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements The financial statements have been prepared in accordance with Australian Equivalent of International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial statements are prepared on an accrual basis and in accordance with historical cost convention.

The accounting policies adopted that underpin these statements are consistent with those applied in 2009–10.

Reference should be made to AHL’s Annual Report 2009–10 for detailed disclosure of AHL’s accounting policies.

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INDIGENOUS BUSINESS AUSTRALIA




211

IBA Budget Statements

INDIGENOUS BUSINESS AUSTRALIA


Indigenous Business Australia’s (IBA) outcome is:

Stimulating the economic advancement of Aboriginal and Torres Strait Islander peoples.


IBA’s vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation—the Aboriginal and Torres Strait Islander Act 2005—IBA’s purpose is to:

• assist and enhance Aboriginal and Torres Strait Islander self management and economic self-sufficiency

• advance the commercial and economic interest of Aboriginal and Torres Strait Islanders by accumulating and using a substantial capital base for the benefit of the Aboriginal and Torres Strait Islander peoples.

To achieve its purpose, IBA has established four key strategic objectives, under which its specific strategies and performance indicators are grouped:

• Accumulating an asset base for the benefit of Indigenous Australians. IBA implements an investment strategy aimed at a balanced portfolio generating returns for further investments and economic benefits for Indigenous Australians. These benefits include cash for further investments, improving employment opportunities and using the assets as the basis for developing small business opportunities. Initiatives are also implemented to support and develop the capacity of Indigenous joint venture partners.

• Encouraging and facilitating Indigenous Australians’ ownership of sustainable small business. IBA provides services and support arrangements which enable existing and potential entrepreneurs to build awareness and business skills, obtain concessional business loans and access aftercare services. IBA also facilitates access to other business support services and mainstream finance where appropriate.

• Bridging the gap in home ownership through concessional home loans and assistance with ongoing loan management and other aspects of home ownership. These services are

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provided for aspiring Indigenous homeowners who cannot access bank loans. IBA also promotes awareness and informed choice of home ownership options and facilitates access to mainstream finance where appropriate.

• Promoting and encouraging Indigenous Australians’ self-management and economic self-sufficiency. IBA maximises the opportunities for Indigenous employment and training through its activities, undertakes or contributes to initiatives that support the development of Indigenous commercial capacity, and brokers partnerships with the private sector, Indigenous organisations and government to deliver support and services that promote Indigenous economic development.

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215


Table 1.1: Indigenous Business Australia resource statement—Budget estimates for 2010–11 as at Budget May 2010

Estimate Proposed Total Actual of prior + at Budget = estimate available

amounts appropriati available in

Source 2010–11 2010–11 2010–11 2009–10 $'000 $'000 $'000 $'000

Opening balance/Reserves at bank - - -

REVENUE FROM GOVERNMENTOrdinary annual services¹Outcome 1Indigenous Business Australia - 38,831 38,831 38,840

Total ordinary annual services - 38,831 38,831 38,840

Other services²Non-operating - 33,170 33,170 33,170

-Total other services - 33,170 33,170 33,170

Total annual appropriations - 72,001 72,001 72,010

Payments from related entities3

Amounts from the portfolio department - - - 9,523Total - - - - 9,523

Total funds from government - 72,001 72,001 81,533

FUNDS FROM OTHER SOURCESInterest - 43,068 43,068 41,887Dividends - - -Sale of goods and services - 39,303 39,303 42,077Rents - 12,969 12,969 13,286Unwind concessional loan discount - 12 12Net gain on sale of assets - - - 3,625Other - 200 200 1,251Total - 95,552 95,552 102,126

Total net resourcing for IB

on

-

-

-

A - 167,553 167,553 183,659 1 Appropriation Bill (No.1) 2010–11 2 Appropriation Bill (No.2) 2010–11 3 Funding provided by a government body that is not specified within the annual appropriation bills as a

payment to the CAC Act body. Note: IBA is not directly appropriated as it is a CAC Act body. Appropriations are made to FaHCSIA and are then paid to IBA, and are considered ‘departmental’ for all purposes. All figures are GST exclusive.

216


Third-party payments from and on behalf of other agencies IBA does not have any third-party drawdowns from and on behalf of other agencies.

217

218

1.3 BUDGET MEASURES


$'000 $'000 $'000 $'000 $'000Revenue measuresHome Ownership Program — transfer of funding from the Home Ownership on Indigenous Land Program 1.1

Administered revenues - - - - -Departmental revenues - -268 6 313 669

Total - -268 6 313 669

Total revenue measuresAdministered - - - - -Departmental - -268 6 313 669

Total - -268 6 313 669

Program 2009-10 2010-11 2011-12 2012-13 2013-14$'000 $'000 $'000 $'000 $'000

Expense measuresHome Ownership Program — transfer of funding from the Home Ownership on Indigenous Land Program 1.1

Administered expenses - - - - -Departmental expenses - 15,340 973 1,095 1,234

Total - 15,340 973 1,095 1,234

Total expense measuresAdministered - - - - -Departmental - 15,340 973 1,095 1,234

Total - 15,340 973 1,095 1,234

Prepared on a Government Financial Statistics (fiscal) basis.

1.2, 1.4

1.2, 1.4




Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the Budget and forward years.

IBA’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of IBA in achieving government outcomes.

Outcome 1

Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans.

Outcome 1 strategy

IBA utilises a suite of commercially focused Indigenous economic development programs to enhance Indigenous economic self-management and self-sufficiency. IBA delivers flexible and concessional interest rate loan products and aftercare support to improve Indigenous home ownership on freehold and Indigenous land. IBA also provides concessional interest rate business loans and business support to increase Indigenous ownership of small to medium sized enterprises. For larger investment projects, IBA brings together private sector capacity partners with Indigenous individuals and groups, co-investing in joint venture projects that provide both commercial returns and a direct transfer of business skills and acumen to Indigenous partners.

IBA offers a holistic approach to Indigenous economic and commercial development which includes close engagement with private sector operators who share the vision of encouraging Indigenous participation in the mainstream economy.

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Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1 2009–10 2010–11


expenses$'000 $'000

Program 1.1: Equities and InvestmentsDepartmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) - -Revenues from other independent sources 83,528 51,615


Program 1.2: Home Ownership ProgramDepartmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 8,021 7,991Revenues from other independent sources 54,862 52,391


Program 1.3: Business Development ProgramDepartmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 23,660 23,428Revenues from other independent sources 4,333 4,939Expenses not requiring Appropriation in the Budget year 8,325 14,879


Program 1.4: Home Ownership on Indigenous LandDepartmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 7,159 7,412Revenues from other independent sources 2,753 -Expenses not requiring Appropriation in the Budget year (7,474) (3,190)


Outcome 1 totals by appropriation type:Departmental expenses

Ordinary Annual Services (Appropriation Bill No. 1) 38,840 38,831Revenues from other independent sources 145,476 108,945Expenses not requiring Appropriation in the Budget year 851 11,689


2009-10 2010-11Average staffing level (number) 242 254

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Program 1.1: Equity and Investments

Program objective

IBA Investments’ objective is to assist and develop Indigenous Australians to achieve economic self-determination through direct investment and participation in commercial and joint venture business enterprises.

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Program 1.1 will not receive government funding, but will cover its operating expenses through prudent management of the investment portfolio.

2009–10 2010–11 2011–12 2012–13 2013–14 Revised Budget Forward Forward Forward

Program expenses ('000) budget year 1 year 2 year 3

Total departmental expenses 83,528 51,615 54,002 55,651 58,055

Total program expenses 83,528 51,615 54,002 55,651 58,055

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A profitable and sustainable investment portfolio that enables our Indigenous partners to participate in the mainstream economy.


• Return on investment

• Indigenous co-investors in investments

• Profit distribution to Indigenous partners

• Indigenous jobs created or supported by the investment portfolio


Key performance indicators budget target year 1 year 2 year 3 Percentage return on Investment 7% 8% 9% 9% 9%Indigenous co-investors 3 5 5 7 7 distribution to Indigenous partners 1% 3% 3% 3% 3%Increase in percentage of Indigenous jobs created or supported by investment portfolio 1% 3% 3% 3% 3%

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Program 1.2: Home Ownership Program


Program 1.2 aims to provide an affordable entry into home ownership for Indigenous people, particularly those on lower incomes. The Home Ownership Program is focused on first home buyers who have difficulty obtaining home loan finance from mainstream commercial lenders. The program’s success is assessed in terms of increasing the percentage of Indigenous home ownership so that it is closer to that of the wider Australian community.

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The interest component of loan repayments has reduced since the beginning of 2008–09 as a result of loan interest rates moving in line with movements in official interest rates. Early loan discharges have also decreased, which is a normal consequence in times of economic uncertainty. While interest revenue is expected to rise, so are average loan sizes. A temporary transfer of capital in the 2010–11 Budget will result in increased new loan projections over 2010–11 and the budget out-years.


Program expenses ('000) budget year 1 year 2 year 3 Total departmental expenses 62,883 60,382 36,595 37,460 38,944Total program expenses 62,883 60,382 36,595 37,460 38,944

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The key program deliverable is the provision of new home loans and the management of the home loan portfolio.


Deliverables budget year 1 year 2 year 3 Number of new home loans 360 530 410 360 350Aggregate loans in the portfolio 3,400 3,550 3,600 3,600 3,600


The key performance indicators measure the success of the program in targeting new lending to those applicants who would not normally be able to obtain a home loan from other financial lenders.


Key performance indicators budget target year 1 year 2 year 3

Number of loans to applicants who have an adjusted combined gross monthly income of not more than 125% of IBA's Income Amount

75%of loans

75%of loans

75%of loans

75%of loans

75%of loans

Number of loans to applicants who are first home buyers

80%of loans

80%ofloans

80%of loans

80%of loans

80%of loans

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Program 1.3: Business Development and Assistance


IBA works with Indigenous Australians to help them succeed in business. The focus is on the sustainable viability of the business, as distinct from simply getting into business.

This objective is achieved primarily through providing affordable business loans and other support to clients to assist them to successfully enter into business. Support is also provided to existing businesses to grow or improve aspects of their management or performance, thus improving their prospects for long-term success.

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Program expenses are expected to remain relatively constant for the foreseeable future.


Program expenses ('000) budget year 1 year 2 year 3 Total departmental expenses 36,318 43,247 39,049 39,723 40,353


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The target for this program is to increase the number of Indigenous Australians who succeed in business. The success of this outcome can be assessed through the deliverables in the table below


Deliverables budget year 1 year 2 year 3 Number of new loans approved 70 70 70 70 70Number of businesses or prospective businesses provided with business advice or support 450 450 450 450 450Number of EDIs undertaken 50 40 40 40 40

Number of jobs created/supported through IBA loan funding 230 200 200 200 200

Number of active loans in the portfolio 310 320 340 340 340


IBA Enterprises has an integrated suite of products: business loans, business support and economic development initiatives (EDIs). Business loans provide clients with affordable finance. Business support assists clients to plan their proposed business and assess its viability, and to access business management training and mentoring in the critical first year of being in business. EDIs support projects that overcome barriers to Indigenous people owning and operating successful businesses; facilitate the development of business-related skills, knowledge, information and assistance; and research economic opportunities.


Key performance indicators budget target year 1 year 2 year 3 Percentage of Loan Accounts moved from Active status that were successfully paid out

75% 70% 80% 80% 80%

Percentage of Loan Clients still in business 12 months after commencing business

80% 80% 80% 80% 80%

Percentage of Loan Clients still in business 2 years after commencing business

70% 70% 70% 70% 70%

Percentage of Loan Clients still in business 3 years after commencing business

55% 55% 55% 55% 55%

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Program 1.4: Home Ownership on Indigenous Land


Provide incentives and affordable loans aimed at making home ownership a realistic choice for Indigenous people living on community titled land.

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New Home Ownership on Indigenous Land (HOIL) loans are expected to rise significantly each year before stabilising at about 100 loans per annum in 2013–14. In 2009–10 and 2010–11, it is expected that most new loans will be in the Northern Territory in communities where township leases have been finalised and in Queensland where land tenure reform has been completed to facilitate home ownership as a real choice for Indigenous people living on community land.


Program expenses ('000) budget year 1 year 2 year 3 Total departmental expenses 2,438 4,222 5,067 5,902 6,915


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The key program deliverables are the provision of home loans to Indigenous individuals and families on community titled land and consultation with groups, individuals and Commonwealth and state agencies to ensure appropriate awareness of the program and that supporting arrangements are in place, particularly relating to the policy and operational framework necessary for parcels of land to be offered for sale to individual community members.


Deliverables budget year 1 year 2 year 3 Number of new loans 20 40 60 80 100Aggregate loans in the portfolio 30 70 130 210 310


The key performance indicators are the number of communities actively engaging in the implementation of home ownership and subsequent home lending.



Number of new communities actively participating in the Home Ownership on Indigenous Land Program 8 12 15 20 25 Number of new loans 20 40 60 80 100 Aggregate loans in the portfolio 30 70 130 210 310

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3.1.1 Movement of administered funds between years Indigenous Business Australia has no administered funds.

3.1.2 Special accounts Indigenous Business Australia has no special accounts.


Table 3.1.3: Australian Government Indigenous expenditure Outcome Other Total Program

Bill Bill Total No. 1 No. 2 approp.$'000 $'000 $'000 $'000 $'000

Indigenous Business AustraliaOutcome 1Departmental 2010–11 38,831 33,170 72,001 95,552 167,553 All OutputsDepartmental 2009–10 38,840 33,170 72,010 111,649 183,659 All OutputsTotal Outcome 2010–11 38,831 33,170 72,001 95,552 167,553 All OutputsTotal Outcome 2009–10 38,840 33,170 72,010 111,649 183,659 All Outputs

Total AGIE 2010–11 38,831 33,170 72,001 95,552 167,553 All OutputsTotal AGIE 2009–10 38,840 33,170 72,010 111,649 183,659 All Outputs

Appropriations

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3.2.1 Differences in agency resourcing and financial statements There are no differences between IBA’s agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements An analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2009–10 estimated actual results are used as the comparative year in the analysis.

IBA made a structural shift in its PB Statements process for 2010–11. In previous years, the PB Statements only constituted IBA Corporation stand-alone budgets; IBA’s investment portfolio was accounted as financial assets and the income from such investments flowed through as dividends. This year, in order to fully align with the annual report process, budgets are prepared on a consolidated basis: assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget. Individual budgets for 29 subsidiaries are now consolidated into IBA’s budget under rules prescribed by the Australian Accounting Standards.

Budgeted agency income statement

IBA is budgeting for an operating deficit of $21.6 million in 2010–11 and an estimated actual deficit for 2009–10 of $31.2 million. The causes of the operating deficits across the two financial years are:

• a significant increase in the discount expense in 2009–10, on revaluation of the concessional rate loan portfolio under AASB 139 (This is primarily driven by a sharp increase in interest rates in 2009–10. The impact from the new policy proposal transferring $56 million of HOIL capital to the Home Ownership Program (HOP) in 2010–11 has resulted in higher discount values charged to the income statement for that year.)

• a significant loss in 2009–10 of $10.6 million associated with the transfer of Outback Stores to FaHCSIA, and the loss on disposal of other investments of $6.5 million.

There is a significant increase in revenue items (i.e. goods and services, rents) and expense items such as employee expenses, supplier expenses and depreciation from the previous years PB Statements. This is due to the structural shift towards consolidated budgeting explained above. Consequently, dividend income from subsidiaries has been eliminated.

Budgeted agency balance sheet

There is a significant upward movement in cash, land and buildings, infrastructure, plant and equipment, investment properties and intangibles from the previous year’s

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PB Statements due to the structural shift towards consolidated budgeting. This has been matched by a decrease in other investments (in subsidiaries) on consolidation.

Budgeted net assets for 2010–11 of $961.5 million represent an increase of $11.6 million over the estimated actual for 2009–10, primarily due to:

• continuing capital injections from Government of $33.2 million

• initial write-down of additional loans settled under the HOIL to HOP capital transfer.

A noticeable trend is the steady continued growth in financial assets, receivables and investments, as IBA continues its lending and investing activities, in line with its objectives of Indigenous economic participation and wealth creation.

Statement of cash flows

Lending activity will increase in 2010–11. New loans will increase from $99.8 million to $159.4 million due to the temporary transfer of $56 million in capital from HOIL to HOP. The interest from home loans is quarantined and ploughed back into the home loan program.

Statement of changes in equity

Total equity has increased by $11.6 million due to an additional equity injection of $33.2 million, offset by a decrease in retained earnings of $21.6 million.

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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

INCOMERevenue

Revenues from Government 38,840 38,831 39,533 39,561 39,505Goods and services 51,600 39,303 41,133 42,778 44,557Interest 41,887 43,068 43,500 45,231 47,347Dividends - - - -Discount - 12 20 20 2Rents 13,286 12,969 14,697 15,144 15,613Other 1,251 200 231 282 335

Total revenue 146,864 134,383 139,114 143,016 147,378

GainsSale of assets 3,625 - - -

Total gains 3,625 - - -Total income 150,489 134,383 139,114 143,016 147,378

EXPENSEEmployees 37,515 36,550 37,049 38,213 39,706Suppliers 54,451 49,305 54,431 56,498 59,278Grants 8,491 16,515 17,066 17,637 17,838Depreciation and amortisation 3,618 2,622 2,687 2,320 2,316Finance costs 79 74 79 74 237

Write-down of assets and impairment of assets 6,495 7,600 2,000 2,000 2,000

Concessional Loan Discount 54,747 45,597 20,200 20,792 21,690Net Losses sale of assets 17,793 - - - -Other 1,978 1,203 1,201 1,203 1,202

Total expenses 185,167 159,466 134,713 138,737 144,267

the equity method 4,036 4,000 4,000 4,000 4,000

Profit (Loss) before income tax (30,642) (21,083) 8,401 8,279 7,111Income tax expense 567 530 649 656 694

Net profit (Loss) (31,209) (21,613) 7,752 7,623 6,417

Profit (Loss) attributable to the AustralianGovernment (31,209) (21,613) 7,752 7,623 6,417

Total comprehensive income attributable to the Australian Government (31,209) (21,613) 7,752 7,623 6,417

-1

--


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Cash and equivalents 123,384 144,369 190,644 234,441 275,284Receivables 429,329 467,802 483,298 502,455 523,518Investments accounted for

using the equity method 44,613 44,613 44,683 44,721 44,760Other investments 212,689 167,795 147,795 127,795 107,795


Non-financial assetsLand and buildings 12,566 12,127 11,638 11,241 10,954Infrastructure, plant and equipment 10,844 9,099 7,465 5,610 4,128Investment properties 136,358 136,358 136,358 136,358 136,358Intangibles 10,658 10,599 10,399 10,225 10,071Other 2,724 2,676 2,582 2,519 1,825


Total assets 983,165 995,438 1,034,862 1,075,365 1,114,693

LIABILITIESInterest Bearing liabilities

Loans 17,463 17,463 17,544 17,544 17,544

Total interest bearing liabilities 17,463 17,463 17,544 17,544 17,544

ProvisionsEmployees 5,358 5,900 5,836 5,838 5,840Other 1,304 1,325 1,304 1,304 1,304


PayablesSuppliers 6,109 6,107 5,646 5,653 5,680Other 2,941 3,096 2,063 1,764 1,476

Total payables 9,050 9,203 7,709 7,417 7,156Total liabilities 33,175 33,891 32,393 32,103 31,844Net assets 949,990 961,547 1,002,469 1,043,262 1,082,849


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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued) Estimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000EQUITY*Parent entity interest

Contributed equity 719,674 752,844 786,014 819,184 852,354Reserves 13,402 13,402 13,402 13,402 13,402Retained surpluses or

accumulated deficits 208,687 187,074 194,826 202,449 208,866Total parent entity interest 941,763 953,320 994,242 1,035,035 1,074,622

Attributed to minority interestContributed Equity 8,227 8,227 8,227 8,227 8,227Total minority interest 8,227 8,227 8,227 8,227 8,227Total equity 949,990 961,547 1,002,469 1,043,262 1,082,849 * ‘Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

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reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward fromprevious period 208,687 13,402 - 727,901 949,990Opening balance adjustment - - - - -

Adjusted opening balance208,687 13,402 - 727,901 949,990

Comprehensive incomeComprehensive income recognised directly in equityGain/loss on revaluation of - - - -property - - - -

Subtotal com

--

prehensive income - - - -

Surplus (deficit) for the period (21,613) - - - (21,613)

Total comprehensive incomereco

-

gnised directly in equity (21,613) - - - (21,613)

Transactions with ownersContributions by ownersAppropriation (equity injection) - - - 33,170 33,170Other - - - -Restructuring - - - - -

Subtotal transactions with owners - - - 33,170 33,170

Transfers between equitycomponents - - - -

Estimated closing balance as at 30 June 2011 187,074 13,402 - 761,071 961,547

-

-

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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash receivedGoods and services 51,600 39,303 41,133 42,778 44,557Appropriations 38,840 38,831 39,533 39,561 39,505Interest 41,887 43,068 43,500 45,231 47,347Dividends -Other 14,537 13,169 14,928 15,426 15,948Total cash received 146,864 134,371 139,094 142,996 147,357

Cash usedEmployees 36,193 36,008 37,113 38,211 39,704Suppliers 59,462 49,233 54,429 59,113 57,090Grants 8,491 16,515 17,066 17,637 17,838Total cash used 104,146 101,756 108,608 114,961 114,632Net cash from (used by)operating activities 42,718 32,615 30,486 28,035 32,725

INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipmentInvestments 20,000 55,000 20,000 20,000 20,000Repayment of loands made 63,310 79,979 96,618 99,336 95,041Total cash received 83,310 134,979 116,618 119,336 115,041

Cash usedPurchase of property, plant and equipment 18,656 379 364 344 393Loans made 99,763 159,400 113,635 116,400 119,700Purchase of investments 20,000 20,000 20,000 20,000 20,000Total cash used 138,419 179,779 133,999 136,744 140,093Net cash from (used by) investing activities (55,109) (44,800) (17,381) (17,408) (25,052)

FINANCING ACTIVITIESCash receivedAppropriations - contributed equity 33,170 33,170 33,170 33,170 33,170Total cash received 33,170 33,170 33,170 33,170 33,170

Net cash from (used by) financing activities 33,170 33,170 33,170 33,170 33,170Net increase (decrease)in cash held 20,779 20,985 46,275 43,797 40,843Cash at the beginning ofthe reporting period 102,605 123,384 144,369 190,644 234,441Cash at the end ofthe reporting period 123,384 144,369 190,644 234,441 275,284

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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONSCapital budget – Bill 1 (DCB) - - - - -Equity injections – Bill 2 33,170 33,170 33,170 33,170 33,170Total capital appropriations 33,170 33,170 33,170 33,170 33,170

Total new capital appropriationsRepresented by:Other 33,170 33,170 33,170 33,170 33,170Total items 33,170 33,170 33,170 33,170 33,170

PURCHASE OFNON-FINANCIAL ASSETSFunded internally by

Departmental resources 18,656 379 364 344 393TOTAL 18,656 379 364 344 393

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Table 3.2.6: Statement of asset movements (2010–11) Buildings Other

property, plant and

equipment

Investment property

Intangibles Other Total

$'000 $'000 $'000 $'000 $'000 $'000As at 1 July 2010Gross book value 13,687 18,424 144,273 13,095 2,724 192,203Accumulated depreciation/amortisation and impairment 1,121 7,580 7,915 2,437 - 19,053Opening net book balance 12,566 10,844 136,358 10,658 2,724 173,150

CAPITAL ASSET ADDITIONSEstimated expenditure onnew or replacement assetsBy purchase – Government fundingBy purchase – donated fundsBy purchase – other 182 197 379By finance leaseAssets received as gifts/donationsFrom acquisition of entities or operations (including restructuring) -Total additions - 182 - 197 - 379

Other movementsAssets held for sale or in a disposal group held for saleDepreciation/amortisation expense 439 1,927 256 2,622Disposals1 -From disposal of entities or -operations (including restructuring) -Other (48) (48)

As at 30 June 2011Gross book value 13,687 18,606 144,273 13,292 2,676 192,534Accumulated depreciation/amortisation and impairment 1,560 9,507 7,915 2,693 21,675Closing net book balance 12,127 9,099 136,358 10,599 2,676 170,859 1 Proceeds may be returned to the OPA Prepared on Australian Accounting Standards basis.

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3.2.4 Notes to the financial statements The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance and Deregulation.

The statements have been prepared:

• on an accrual accounting basis

• in compliance with Australian Accounting Standards and Australian Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group.

Revenue from government

This represents appropriation from government to IBA for the delivery of IBA’s four programs in pursuit of its single outcome. Increases in the ordinary annual appropriations are a result of new measures and variations explained in Section 2.

Expenses—depreciation and amortisation

Property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current or current and future reporting periods, as appropriate.

Concessional loan discount

IBA continues to designate its loan portfolio at fair value through profit and loss as per paragraph 11A of AASB 139, which provides for contracts with embedded derivatives, such as prepayment options, to be designated at fair value through profit and loss. The variation in the loan portfolio under the fair value basis is written directly to the income statement.

Financial assets—receivables

This includes loans and advances made by IBA to clients in the delivery of its outputs, in addition to amounts owing to IBA for delivery of goods and services, and dividends owed to IBA from subsidiaries, associates and investments. Loans receivable are carried at fair value under AASB 139.

Assets—non-financial

Except for any revalued assets, the reported value of plant and equipment represents the purchase price paid less depreciation incurred.

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Land and buildings held for investment are carried at fair value.

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INDIGENOUS LAND CORPORATION




247

ILC Budget Statements

INDIGENOUS LAND CORPORATION


1.1 STRATEGIC DIRECTION

The Indigenous Land Corporation (ILC) is an independent Australian Government statutory authority established to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting with the acquisition and management of land. The ILC was established on 1 June 1995, and is governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). Its planned outcome is:

Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

The ATSI Act states that the ILC has two functions: land acquisition and land management. The ILC’s functions are to be exercised ‘in addition to, not instead of’ the functions conferred on other agencies (s. 191F(3)).

The ILC is not budget funded. Its current primary source of income is the realised real return from the Aboriginal and Torres Strait Islander Land Account (Land Account) pursuant to s. 193C (3) of the ATSI Act. The Land Account is administered by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

Since 2004, the ILC has operated with a fluctuating annual income due to an anomaly in a formula in the ATSI Act. Accordingly, in 2009–10 expenditure is projected to be greater than the revenue from the Land Account. This will be managed through the use of accrued cash reserves. The Government is looking to resolve this issue through minor legislative amendments, which are currently before parliament. The legislative amendment will provide the ILC with a minimum annual income of $45 million indexed per annum from 2010–11.

The Board is the ILC’s primary decision-making body and sets out the ILC’s strategic direction, policies and strategies in the National Indigenous Land Strategy 2007–12. The Board oversees governance of the ILC’s administration, considers land acquisition and land management proposals, and monitors performance.

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The ILC provides assistance with land acquisition and land management through calling for applications from Indigenous organisations and landholders, and initiating projects to respond to opportunities to deliver significant Indigenous benefits. Key strategic priorities for the ILC will continue to be the achievement of training and employment outcomes and collaboration with other government agencies, industry, peak Indigenous organisations and the non-government sector. These collaborations bring additional expertise, funding and resources to achieve a more significant impact.

The ILC is committed to monitoring and evaluating its Land Acquisition and Land Management Program to ensure that benefits are being achieved and progress is made towards achieving its outcome. The ILC has an evaluation framework that guides it in monitoring its performance and informs its strategic planning.

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Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Indigenous Land Corporation resource statement—Budget estimates for 2010–11 as at Budget May 2010

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriationavailable in

Source 2010–11 2010–11 2010–11 2009–10$'000 $'000 $'000 $'000

Opening balance/Reserves at bank 158,599 158,599

REVENUE FROM GOVERNMENT

Special accountsAboriginal and Torres Strait Islander Land Account1 45,000 45,000 -

Total Special Account Total funds from Government - 45,000 45,000 -

FUNDS FROM OTHER SOURCESInterest 6,433 6,433 9,099Other 4,106 4,106 4,106Total 10,539 10,539 13,205

Total net resourcing for agency 158,599 55,539 214,138 13,205 1 A CAC Act body may receive payment from a special account held by an FMA Act agency. The CAC Act

body does not hold the special account itself and therefore does not have a balance carried forward from earlier years.

All figures are GST exclusive

1.3 BUDGET MEASURES

Budget measures relating to Indigenous Land Corporation are detailed in Budget Paper No. 2 and are summarised below.

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$'000 $'000 $'000 $'000 $'000Expense measuresIndigenous Land Corporation - reform of funding levels 1.1


Total - - - - -Total expense measures

Administered - - - - -Departmental - - - - -

Total - - - - - Prepared on a Government Financial Statistics (fiscal) basis.

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SECTION 2: OUTCOME AND PLANNED PERFORMANCE


Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which the government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of ILC in achieving government outcomes.

Outcome 1

Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

Outcome 1 strategy

The statutory purpose of the ILC is to assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits.

The National Indigenous Land Strategy 2007–12 states that the ILC will assist with the acquisition and management of land-based projects that achieve the following priorities.

Deliver socio-economic development outcomes for Indigenous people

The ILC Board has prioritised training participation and employment creation as key indicators for measuring progress in achieving socio-economic development and will call for applications that achieve these outcomes. In 2010–11, the ILC will continue to operate employment and training projects on agricultural and tourism businesses to host Indigenous trainees and transition them into employment.

Provide Indigenous youth access to education

The ILC is working in collaboration with DEEWR and FaHCSIA to acquire land and build hostels to enable Indigenous secondary students in regional and remote Australia to access education. In 2010–11, the National Centre for Indigenous Excellence will be operated in Redfern, Sydney, to provide access to a range of educational, cultural, sporting and social services, and short-stay accommodation facilities for up to 5,000 Indigenous youth from remote and regional Australia.

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Assist Indigenous landholders to sustainably manage and use their land

The ILC continues to commit resources to bring Indigenous-held land back into production and to increase the capacity of Indigenous landholders to sustainably manage their land. Support is provided through a range of mechanisms, including regional collaborations, property infrastructure development, and property planning and training projects.

Protect and maintain land with cultural and environmental values

The ILC recognises the importance of land for cultural identity. Indigenous organisations can apply for assistance with land acquisition or management to protect and maintain cultural and environmental heritage values. The ILC collaborates with the Department of the Environment, Water, Heritage and the Arts to expand its Indigenous Protected Areas program and to assist Indigenous groups to acquire land under the National Reserve System program.

Indigenous owned or controlled land is included in the Overcoming Indigenous Disadvantage report (2009) as an indicator of economic participation and development and of the social and cultural relationship between Indigenous people and their land. In 2008, Indigenous owned or controlled land comprised 17.3 per cent of the area of Australia (excluding native title lands). Approximately 4.4 per cent of Indigenous-held land in Australia has been acquired by the ILC.

In achieving its outcomes, the ILC will build a secure and sustainable land base now and for future generations. Achievements will also contribute to the following closing the gap targets:

• halving the gap in employment outcomes between Indigenous and non-Indigenous Australians within a decade

• halving the gap for Indigenous students in Year 12 attainment or equivalent attainment rates by 2020.

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expenses$'000 $'000

Program 1.1: Assistance in the acquisition and management of an Indigenous land baseRevenue from Government

Special Accounts - 45,000Revenues from other independent sources 13,205 10,539

Total for Program 1.1 13,205 55,539Outcome 1 Totals by resource typeRevenue from Government

Special Accounts - 45,000Revenues from other independent sources 13,205 10,539


2009–10 2010–11Average Staffing Level (number) 207 213

Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management


Average staffing levels include the ILC and the ILC’s wholly owned subsidiaries, National Indigenous Pastoral Enterprises Pty Ltd. (NIPE) and the National Indigenous Centre for Indigenous Excellence Pty Ltd (NCIE). NIPE employs staff engaged on ILC owned and leased properties as part of the ILC’s land management function. The split between the entities is as follows:

2009–10 2010–11

ILC 88 90

NIPE 117 120

NCIE 2 3

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Program 1 Acquisition and management of an Indigenous land base

Program 1 objective

To assist in the acquisition and management of an Indigenous land base


Socio-economic development

• To acquire and grant land to Indigenous organisations to enable Indigenous people to achieve training and employment outcomes

• To operate agricultural and tourism businesses that train Indigenous people and transition them to secure jobs

Education

• To collaborate with other agencies to acquire land, and/or establish student hostels on Indigenous-held land, to assist secondary students to gain access to education

• To acquire land or assist with land management to provide educational, leadership and sporting opportunities to young Indigenous people through ILC-initiated projects

Sustainable management of land

• To provide funding assistance to Indigenous landholders seeking to improve management of their land

• To provide training and property planning assistance to build the capacity of Indigenous landholders

• To collaborate with other agencies and industry partners to implement regional projects that build the capacity of Indigenous landholders to sustainably manage land.

Cultural and environmental heritage protection

• To acquire and grant land to Indigenous organisations for the purposes of environmental heritage protection and maintenance of culture

• To provide land management assistance to Indigenous landholders to support them in protecting and maintaining cultural and environmental heritage

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Program 1 expenses

Since 2004, the ILC has operated with a fluctuating annual income due to an anomaly in a formula in the ATSI Act. Accordingly, in 2009–10 expenditure is projected to be greater than the revenue from the Land Account. This will be managed through the use of accrued cash reserves. The Government is looking to resolve this issue through minor legislative amendments, which are currently before parliament. The legislative amendment will provide the ILC with a minimum annual income of $45 million indexed per annum from 2010–11.


('000) budget year 1 year 2 year 3Expenses not requiring appropriation in

the Budget year 53,077 55,600 55,928 55,200 56,283Total program expenses 53,077 55,600 55,928 55,200 56,283

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Program 1 deliverables

The ILC assists Indigenous corporations to acquire land, and assists Indigenous landholders with projects on Indigenous-held land. The ILC offers a number of assistance types, described below as program deliverables and services.


Deliverables budget year 1 year 2 year 3 Properties acquired for socio-economic devleopment and culturaland environmental heritage protection 6 6 6 6 6 Properties granted 15 15 10 10 10

Employment and training projectsimplemented on ILC agriculturaland tourism businesses 15 15 15 15 15

Properties acquired and/orsecondary student hostelsestablished - 1 2 1 - Regional land management projectsimplemented 15 15 15 15 15 Property-based, property planningand training land managementprojects assisted 30 30 30 30 30

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Program 1 key performance indicators

Participation in training and employment are the key indicators used for measuring progress in achieving socio-economic development. To recognise its relative contribution to the benefits delivered, the ILC counts those people it directly employs and hosts on its businesses separately from those jobs it has enabled through acquisition of land or land management assistance.

To measure progress in achieving access to education, a KPI that specifically relates to the construction of hostels in regional Australia will be used.

Indigenous organisations apply to the ILC for assistance in protecting the cultural and environmental values of land. This is measured through the proportion of ILC’s total projects, rather than a target number of properties.

2009–10 2010–11 2011–12 2012–13 2013–14 Revised Budget Forward Forward Forw


Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses 128 178 241 241 241

Total number of Indigenous trainees hosted through ILC agricultural and tourism businesses 190 200 240 240 240 Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects 300 300 300 300 300 Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects 600 600 600 600 600

Increase in the number of Indigenous youth in regional Australia accessing education through hostels established by the ILC and other agencies

- 40 200 240 240 Total number of Indigenous-held properties with improved land management 140 100 100 100 100 Proportion of ILC-assisted projects that protected cultural and envrionmental heritage values or maintained culture 25% 25% 25% 25% 25%Proportion of projects that were collaborative with and leveraged funding from other agencies 66% 66% 66% 66% 66%

ard

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Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the Budget year 2010–11. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.


3.1.1 Movement of administered funds between years ILC has no administered funds in the 2010–11 Budget.

3.1.2 Special accounts ILC has no special accounts in the 2010–11 Budget.

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Bill Bill Special TotalNo. 1 No. 2 approp approp$'000 $'000 $'000 $'000 $'000 $'000


Outcome 1Administered 2010–11 - - - - - -Administered 2009–10 - - - - - -Departmental 2010–11 - - - - 55,539 55,539 1Departmental 2009–10 - - - - 13,205 13,205 1Total outcome 2010–11 - - - - 55,539 55,539Total outcome 2009–10 - - - - 13,205 13,205

Total administered 2010–11 - - - - - -Total administered 2009–10 - - - - - -

Total departmental 2010–11 - - - - 55,539 55,539Total departmental 2009–10 - - - - 13,205 13,205

Total AGIE 2010–11 - - - - 55,539 55,539Total AGIE 2009–10 - - - - 13,205 13,205

Appropriations

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3.2.1 Differences in agency resourcing and financial statements ILC has no differences in agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements Until 2003–04, ILC received an annual allocation from the Land Account according to a formula specified in section 193A of the ATSI Act. From 2004–05 to 2009–10, it received the ‘realised real return’ from the Land Account (s. 193C). From 2010–11, in accordance with a legislative change currently before parliament, the ILC will receive a minimum of $45 million indexed per annum from the Land Account.

Estimated payments from the Land Account from 2009–10 forward have been provided by FaHCSIA, which is responsible for the administration of the Land Account.

The total resources for the ILC’s Outcome include the income from the Land Account, and represent the funds available to ILC to carry out its legislated functions.

Under its legislation, ILC has the flexibility to invest funds and to roll over funds not expended in previous years.

Under section 191H of the ATSI Act, ILC has the specific power to invest its moneys. In addition, section 193K of the ATSI Act specifically exempts ILC from section 18(3) of the Commonwealth Authorities and Companies Act 1997 (CAC Act). That section of the CAC Act deals with allowable investments. Earnings on these investments are represented in the budgeted departmental comprehensive income statement.

Under its legislation, ILC acquires land for the specific purpose of granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. ILC capitalises the land on purchase and makes an immediate provision for the grant equivalent to the purchase price. In the budgeted departmental comprehensive income statement, the expenses associated with the purchase and grant of the land are recognised in the period in which the land is purchased. Expenses associated with land management projects are recognised in the period in which the expenditure is incurred.

ILC also holds properties for granting that have significant livestock on them. In accordance with Australian Accounting Standards, ILC values the livestock on a market-to-market basis. Accordingly, the change in market value in any given period is recognised in the budgeted departmental comprehensive income statement.

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2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 10,452 11,288 12,190 13,043 13,695Supplier expenses 41,125 42,812 42,238 40,657 41,088Grants Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500Finance costsWrite-down and impairment of assetsLosses from asset salesOtherTotal expenses 53,077 55,600 55,928 55,200 56,283LESS: OWN-SOURCE INCOMERevenueSale of goods and rendering of servicesFees and finesInterest 9,099 6,433 5,832 4,000 4,000DividendsRental incomeRoyaltiesOther 4,106 4,106 4,106 4,106 4,106Total revenue 13,205 10,539 9,938 8,106 8,106GainsSale of assetsOtherTotal gains - - - -Total own-source income 13,205 10,539 9,938 8,106 8,106Net cost of (contribution by) (39,872) (45,061) (45,990) (47,094) (48,177)

servicesRevenue from Government - 45,000 45,990 47,094 48,177Surplus (Deficit) (39,872) (61) - -Surplus (Deficit) attributable to the

Australian Government (39,872) (61) - -OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves - - - -Total other comprehensive income - - - -Total comprehensive income (39,872) (61) - -Total comprehensive income (39,872) (61) - -

attributable to theAustralian Government

-

-

-

-

-

-

-


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Cash and equivalents 55,531 55,531 55,531 55,531 55,531Trade and other receivables 3,836 3,836 3,836 3,836 3,836Investments accounted for under - - - - -

the equity methodOther investments 103,090 103,029 103,029 103,029 103,029Tax assets - - - -Other 934 934 934 934 934


Non-financial assetsLand and buildingsProperty, plant and equipment 74,946 73,946 72,946 72,946 72,946Investment properties - - - - -Intangibles 360 360 360 360 360Inventories 151,014 173,814 196,614 196,614 196,614Other 38,517 39,517 40,517 40,517 40,517

Total non-financial assets 264,837 287,637 310,437 310,437 310,437Assets held for sale 464 464 464 464 464

Total assets 428,692 451,431 474,231 474,231 474,231

LIABILITIESPayables

Suppliers 8,661 8,661 8,661 8,661 8,661Grants - - - - -Dividends - - - - -Other 23,286 46,086 68,886 68,886 68,886

Total payables 31,947 54,747 77,547 77,547 77,547

Interest bearing liabilitiesLoans - - - - -Leases - - - - -Deposits - - - - -Other - - - -

Total interest bearing liabilities - - - -

ProvisionsEmployee provisions 2,535 2,535 2,535 2,535 2,535Other 128,045 128,045 128,045 128,045 128,045


Liabilities included in disposal - - - - -groups held for sale


Net assets 266,165 266,104 266,104 266,104 266,104

-

--


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$'000 $'000 $'000 $'000 $'000EQUITY*Parent entity interest

Contributed equity - - - - -Reserves 3,303 3,303 3,303 3,303 3,303Retained surplus 262,862 262,801 262,801 262,801 262,801

(accumulated deficit)Total equity 266,165 266,104 266,104 266,104 266,104 * ‘Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Budgeted departmental statement of cash flows (Budget year 2010–11)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000


Goods and services 3,500 3,500 3,500 3,500 -Appropriations - - - - -Interest 9,099 6,433 5,832 4,000 4,000Dividends - - - - -Net GST received 4,526 4,432 3,499 3,382 -Other 606 45,606 46,596 47,700 52,283


Cash usedEmployees 10,452 11,289 12,190 13,043 13,695Suppliers 46,600 48,193 46,687 43,889 41,088Borrowing costs - - - - -Net GST paid - - - - -Other - - - - -

Total cash used 57,052 59,482 58,877 56,932 54,783Net cash from (used by) (39,321) 489 550 1,650 1,500

operating activitiesINVESTING ACTIVITIESCash received

Proceeds from sales of property, - - - - -plant and equipment

Proceeds from sales of financial - - - - -instruments

Investments 39,871 61 - - -Other - - - - -

Total cash received 39,871 61 - - -

Cash usedPurchase of property, plant 550 550 550 1,650 1,500

and equipmentPurchase of financial instruments - - - - -Investments - - - - -Other - - - - -

Total cash used 550 550 550 1,650 1,500Net cash from (used by) 39,321 (489) (550) (1,650) (1,500)

investing activities Continued on next page.

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Table 3.2.3: Departmental statement of cash flows (continued)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000


Contributed equity - - - - -Proceeds from issuing financial

instruments - - - - -Other - - - - -

Total cash received - - - - -

Cash usedRepayments of borrowings - - - - -Dividends paid - - - - -Other - - - - -

Total cash used - - - - -Net cash from (used by)

financing activities - - - -Net increase (decrease)

in cash held - - - - -Cash and cash equivalents at the

beginning of the reporting period 55,531 55,531 55,531 55,531 55,531Effect of exchange rate movements

on cash and cash equivalents at the beginning of reporting period - - - - -

Cash and cash equivalents at the end of the reporting period 55,531 55,531 55,531 55,531 55,531


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Table 3.2.4: Budgeted departmental statement of changes in equity—summary of movement (Budget year 2010–11)


reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward from 262,862 3,303 - - 266,165

previous periodAdjustment for changes in - - - - -

accounting policiesAdjusted opening balance 262,862 3,303 - - 266,165

Comprehensive incomeComprehensive income recognised - - - - -

directly in equity:Gain/loss on revaluation of - - - - -

propertySub-total comprehensive income - - - -

Surplus (deficit) for the period (61) - - - (61)

Total comprehensive income (61) - - - (61)recognised directly in equity

Transactions with ownersDistributions to owners

Returns on capital - - - - -Dividends

Returns of capital - - - - -RestructuringOther

Contributions by ownersAppropriation (equity injection) - - - - -Appropriation (departmental - - - - -capital budget) - - - - -Other

Sub-total transactions with owners - - - -

Transfers between equity - - - - -components

Estimated closing balance 262,801 3,303 - - 266,104as at 30 June 2011

-

-


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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) - - - - -Equity injections - Bill 2 - - - - -Loans - Bill 2 - - - - -Previous years' outputs - Bill 2 - - - - -Departmental capital - special - - - - -

appropriation (Dept only)Total capital appropriations - - - - -


Purchase of non-financial assets - - - - -Annual finance lease costs - - - - -Other Items - - - - -

Total Items - - - - -

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations - - - - -Funded by capital appropriation - DCB1 - - - - -Funded by finance leases - - - - -Funded internally from 500 500 500 1,500 1,500

departmental resources2

TOTAL 500 500 500 1,500 1,500

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 500 500 500 1,500 1,500less additions by finance lease - - - - -less additions by creditors / borrowings - - - - -plus borrowing / finance costs - - - - -plus Annual finance lease costs - - - - -less Gifted assets - - - - -less s. 32 / restructuring - - - - -Total cash used to 500 500 500 1,500 1,500

acquire assets Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of asset movements (2010–11)

Other property, Intangibles Totalplant and

equipment$'000 $'000 $'000

As at 1 July 2010Gross book value 82,758 645 83,403Accumulated depreciation/amortisation

and impairment (7,812) (265)Opening net book balance 74,946 (265) 74,681CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equityBy purchase - appropriation ordinary

annual servicesBy purchase - donated fundsBy purchase - other 500 500By finance leaseAssets received as gifts/donationsFrom acquisition of entities or operations

(including restructuring)Total additions 500 - 500

Other movementsAssets held for sale or in a disposal

group held for saleDepreciation/amortisation expense (1,500) (1,500)Disposals

From disposal of entities or operations(including restructuring)

Other (20) (20)

As at 30 June 2011Gross book value 83,258 625 83,883Accumulated depreciation/amortisation

and impairment (9,312) (265) (9,577)Closing net book balance 73,946 360 74,306


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3.2.4 Notes to the financial statements Departmental financial statements and schedule of administered activity

ILC has no administered items and does not receive appropriations.

Asset valuation

From 1 July 2005, in accordance with Australian Equivalents of International Financial Reporting Standards, government agencies and authorities are required to use the fair value basis to measure property, plant and equipment.

Summary of significant accounting policies

Basis of accounting

The budgeted financial statements are a special purpose financial report.

Rounding

The budgeted financial statements have been rounded to the nearest thousand dollars.

Principles of consolidation

The consolidated budgeted financial statements are those of the economic entity, comprising ILC (the parent entity) and its wholly owned subsidiaries.

Investments

Investments are recorded at their current cash-based valuation at the reporting date. Section 193K of the Aboriginal and Torres Strait Islander Act 2005 states that the investment restrictions in section 18(3) of the Commonwealth Authorities and Companies Act 1997 do not apply to ILC.

Inventory held for distribution

Inventory held for distribution represents properties purchased for the purpose of transfer to appropriate organisations in line with the objectives of ILC and properties transferred to ILC as a result of the Aboriginal and Torres Strait Islander Commission Amendment Act 2004. Land purchases (including the related plant, equipment and livestock, acquisition and holding costs) are capitalised on purchase and classified as inventory. A provision is raised in the budgeted departmental income statement for the full cost of land purchases (excluding livestock), representing the sacrifice of future benefits embodied in the assets.

Biological assets

Livestock held for trading purposes are classified as biological assets. Livestock are valued at market value as at the reporting date.

271


Recognition of income

Receipts from the Land Account are recognised at the time ILC becomes entitled to receive the revenue, and have been classified for the purpose of this report as ‘Revenues from Land Account’.

Economic dependency

ILC is dependent on the realised real return from the Land Account in accordance with section 193C of the Aboriginal and Torres Strait Islander Act 2005.

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TORRES STRAIT REGIONAL AUTHORITY




275

TSRA Budget Statements

TORRES STRAIT REGIONAL AUTHORITY


The Torres Strait Regional Authority’s (TSRA) outcome is:

Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture


The TSRA is a Commonwealth statutory authority which was established in 1994 under the Aboriginal and Torres Strait Islander Commission Act 1989, now known as the Aboriginal and Torres Strait Islander Act 2005. It is the peak Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait.

The TSRA also performs separate functions under the Native Title Act 1993 as the Native Title Representative Body for the Torres Strait Region.

The TSRA is required under section 142D of the Aboriginal and Torres Strait Islander Act 2005 to formulate and implement a plan to guide the progress of the Torres Strait Region. This plan, known as the Torres Strait Development Plan, is updated every four years to be consistent with the term of the TSRA Board.

In 2008–09 the TSRA finalised the Torres Strait Development Plan 2009–13, the fourth development plan since the establishment of the TSRA. The plan outlines seven new or revised TSRA program components (Economic Development; Culture, Art and Heritage; Native Title; Environmental Management; Governance and Leadership; Healthy Communities; Safe Communities), each of which has a number of desired outcomes and associated benefits.

The Development Plan and its program components have been informed and driven by the Torres Strait and Northern Peninsula Area Regional Plan 2009–29 and the goals and aspirations of the residents of the Torres Strait. The new TSRA vision, which is shared by both the Regional Plan and the Development Plan, is:

• ‘Empowering our people, in our decision, in our culture, for our future’

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• ‘Ngalpun yangu kaaba woeydhay, a ngalpun muruygaw danalagan mabaygal kunakan palayk, bathayngaka’ (KALA LAGAU YA)

• ‘Buaigiz kelar obaiswerare, merbi mir apuge mena obakedi, muige merbi areribi tonarge, ko merbi keub kerkerem’ (MERIAM MIR)

• ‘Ngalpan moebaygal thoepoeriwoeyamoeyn, ngalpan ya kuduthoeraynu, ngalpan igililmaypa, sepa setha wara goeygil sey boey wagel’ (KALA KAWAU YA)

The Development Plan has also been designed to align with the COAG Building Blocks and to contribute to the Indigenous-specific outcomes of the National Partnership Agreements as outlined in the National Indigenous Reform Agreement.

As the regional Native Title Representative Body (NTRB), the TSRA will continue to direct efforts in 2010–11 to the Regional Sea Claim. The determination will have long-term implications for the region, including the delivery of TSRA program components, as well as short-term implications for TSRA’s NTRB activities.

Given its role as the core funding provider for the Community Development Employment Projects (CDEP) Program in the region, the TSRA will be central to the rollout of CDEP reform measures in 2010–11 and beyond.

The Torres Strait Ranger Project will continue to be rolled out in seven Torres Strait communities by the TSRA’s Land and Sea Management Unit. This dedicated ranger project will play a central role in the TSRA’s Environmental Management Program component, as it will be used to deliver a variety of land and sea management activities identified in the Land and Sea Management Strategy, the Regional Investment Strategy for the Torres Strait, and the Marine Turtle and Dugong Management Plan for each of the participating communities.

The Major Infrastructure Program, which delivers environmental health infrastructure to remote island communities, will move into its second stage of Phase 4 works, due for completion in 2011. Works will include the completion of reticulated sewerage to all 15 outer island communities, and the extension of sewerage reticulation and pumping to unserviced or new housing allotments.

A key area of externally focused activity for the TSRA in 2010–11 will be continuing to drive the regional planning process, including formalisation of an Integrated Service Delivery Agreement, to be signed by governments at all levels working in the region, which will aim to achieve coordinated, integrated delivery of services. The TSRA will also dedicate considerable time to engaging with local stakeholders, informing them of the new Development Plan and associated changes, and supporting their adaptation to the new environment.

Distance and transport constraints continue to affect the costs of providing fair and equitable access to government services, including service delivery and the cost of

278

279



Table 1.1: Torres Strait Regional Authority resource statement—Budget estimates for 2010–11 as at Budget May 2010

Estimate Proposed Total Actual of prior + at Budget = estimate available

amounts appropriati available in

Source 2010–11 2010–11 2010–11 2009–10 $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 26,075 - 26,075 -

REVENUE FROM GOVERNMENTOrdinary annual services¹

Outcome 1: Progress towards closingthe gap for Torres Strait Islander andAboriginal people living in the TorresStrait Region through developmentplanning, coordination, sustainableresource management, andpreservation and promotion ofIndigenous culture - 69,758 69,758 67,391

Total ordinary annual services 69,758 69,758 67,391

Total funds from government 69,758 69,758 67,391

FUNDS FROM OTHER SOURCESInterest - 800 800 800Other - 5,585 5,585 5,585Total - 6,385 6,385 6,385

Total net resourcing for agenc

on

y 26,075 76,143 76,143 73,776 1 Appropriation Bill (No. 1) 2010–11. Note: The Torres Strait Regional Authority is not directly appropriated, as it is a CAC Act body. Appropriations are made to FaHCSIA and are then paid to the TSRA, and are considered ‘departmental’ for all purposes. All figures are GST exclusive.

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1.3 BUDGET MEASURES

Budget measures relating to the Torres Strait Regional Authority are detailed in Budget Paper No. 2 and are summarised below.


$'000 $'000 $'000 $'000 $'000Expense measures

Community Development Employment Projects — indexation reform 1.1

Administered expenses - - - - -Departmental expenses - -24 -37 -205 -268

Total - -24 -37 -205 -268

Reform of Community Development Employment Projects (CDEP) program in the Torres Strait 1.1

Administered expenses - - - - -Departmental expenses - 528 -5,626 -17,988 -17,737

Total - 528 -5,626 -17,988 -17,737Total expense measures

Administered - - - - -Departmental - 504 -5,663 -18,193 -18,005

Total - 504 -5,663 -18,193 -18,005 Prepared on a Government Financial Statistics (fiscal) basis.

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Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the TSRA in achieving government outcomes.

Outcome 1

Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

Outcome 1 strategy

The TSRA is continuing with the implementation phase of its new and revised program components, which are focused on the delivery of outcomes and realisation of measurable benefits. The program components aim to contribute to achieving the goals of the Regional Plan 2009–29 and to closing the gap in Indigenous disadvantage.

The Development Plan is an action plan with a focus on delivering outcomes and benefits for the Indigenous people of the Torres Strait Region. This and subsequent development plans will contribute to achieving the outcome statement for the TSRA.

The program components will be formally reviewed in conjunction with the production of the next plan (in 2013). The Development Plan will not be achieved fully within a four-year period, and reflects the Australian Government’s long-term goals of generational change and impact.

The Torres Strait Development Plan program components are:

• Economic Development

• Culture, Art and Heritage

• Native Title

282


• Environmental Management

• Governance and Leadership

• Healthy Communities

• Safe Communities.



283




expenses$'000 $'000

Program 1: Torres Strait Regional DevelopmentRevenue from government

Ordinary annual services (Appropriation Bill No. 1) 67,391 69,758Revenues from other independent sources 6,385 6,385

Total for Program 1 73,776 76,143

Outcome 1 Totals by resource typeRevenue from government

Ordinary annual services (Appropriation Bill No. 1) 67,391 69,758Revenues from other independent sources 6,385 6,385


2009–10 2010–11Average staffing level (number) 79 86

Outcome 1: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture


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Program 1.1 Torres Strait Regional Development Program 1.1 objective

In November 2008, the Torres Strait Regional Authority Board endorsed the following Outcome statement: ‘Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.’


Commencing July 2010, it is proposed to align the CDEP program in the Torres Strait with the national program through a two-stage approach: Stage 1 commences on 1 July 2010 and Stage 2 commences on 1 July 2011.

The reform program will affect 1400 current CDEP participants and will deliver a Work Readiness Service, Community Development and Commonwealth Jobs Package. The Government has committed $53 million over two years for 2010–11 and 2011–12 towards closing the gap in Indigenous Employment Outcomes by improving access to reformed employment services, building work readiness skills for individuals and enhancing community capacity to engage and develop economically.

The Government has also committed $14 million for 2010–11 to further the closing of the gap in environmental health infrastructure within the Torres Strait Region.

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Program 1.1 components

Economic Development program component objective

The TSRA will take the lead as a ‘Whole of Region Economic Development Solution Broker’. In this role, the TSRA will work in partnership with other government and non-government organisations and individual communities to advance this regional goal and ensure the efficient use of resources. It will aim to:

• stimulate economic development across the region

• advance business skills and align training initiatives with regional employment opportunities

• advance Indigenous ownership and management of industries and enterprises.

Culture, Art and Heritage program component objective

The TSRA will form a Culture, Art and Heritage Program to support the regional outcomes. The aims of the program are to:

• protect culturally significant sites and artefacts to ensure their longevity

• revitalise traditional cultural practices (art, dance, language, storytelling) among communities.

Native Title program component objective

To provide high-quality and culturally appropriate professional services to native title holders and claimants in the Torres Strait Region, to facilitate the securing of legal recognition of native title to land and waters in the Torres Strait and thereby improve opportunities for improved economic, cultural and social participation for Torres Strait Islander and Aboriginal people living in the region.

This program component will:

• assist traditional owners to obtain legal recognition of native title over land and sea in the Torres Strait Region

• protect and manage native title rights

• build the capacity of native title Prescribed Bodies Corporate.

Environmental Management program component objective

To provide services and support to promote sustainable Natural Resource Management in the Torres Strait Region. This program component will:

• increase utilisation of renewable energies

• reduce waste management issues and environmental impact

• manage effects of climate change, specifically tidal inundation and erosion

• improve land management for future generations

• promote sustainable management of natural resources

286


Governance and Leadership program component objective

To help maintain and improve the leadership and governance skills of current and future leaders of the Torres Strait to support development planning and coordination of integrated government service delivery in the Torres Strait Region.

This program component will:

• involve Indigenous leaders in legislative processes, policies and priorities in terms of setting direction for integrated planning and service delivery

• involve Indigenous leaders in monitoring progress towards reaching regional goals and outcomes

• develop the capacity of current and future leaders across the region and support effective communication between the community and organisations involved in the region.

Healthy Communities program component objective

The TSRA’s Healthy Communities Program aims to:

• monitor and provide strategic policy advice regarding health service delivery in the region and contribute to ensuring that health service levels are equal to the national standard

• improve the health of Indigenous people living in the region through proactive healthy living initiatives

• increase Indigenous home ownership.

Safe Communities program component objective

The TSRA will contribute to the safety of communities by:

• contributing to the development of standards for the provision of all mainstream social services and facilities, including emergency response services, through engagement with responsible agencies

• undertaking a policy advocacy, monitoring and supporting role with respect to mainstream services, advocating and acting as a solution broker on behalf of communities and the region, using integrated service delivery forums

• providing direct funding and resource support for some social support services, and infrastructure, facilities and equipment, that contribute to improved safety and accessibility for communities and families (the TSRA will not provide mainstream social or community services).

287



Over the past year, the TSRA has undertaken a coordination role in bringing together key government agencies to work in partnership towards integrated planning and improved service delivery. The results of those consultations have been refined by elected representatives of TSRA and local government councils into a regional vision and goals statement, the Torres Strait and Northern Peninsular Area Regional Plan 2009–2029. The Regional Plan provides regional goals to guide the strategic policy of all government service providers.

The TSRA is addressing these goals through an integrated portfolio of seven programs as set out on our current 2009–2013 Development Plan.

The program outcomes are all congruent with TSRA’s outcome statement. Performance indicators have been identified to show whether progress is being made in achieving outcomes and benefits. The benefits are measurable and meaningful improvements that result from outcomes. Deliverables for each program component as at the publication date of these PB Statements are:

Economic Development program component

• Increased number of Torres Strait Islander and Aboriginal individuals in non-Community Development Employment Projects (CDEP) employment

• Increased number of approved TSRA loans

• Increase in the annual total catch of marine resources (finfish and Kaiar (tropical rock lobster) by Torres Strait Islander and Aboriginal people

• Increase in the participation of Torres Strait Islander and Aboriginal people in industry training

Culture, Art and Heritage program component

• Increased number of professionally active Torres Strait Islander and Aboriginal artists and active art centres in the region

• Increased capacity and capability to facilitate cultural initiatives and projects

• Increased profile of Torres Strait Islander and Aboriginal arts and culture

• Increased community involvement in the preservation of cultural heritage

Native Title program component

• Provide legal, policy and advocacy support for Prescribed Bodies Corporate

• Support native title activities, including determination of claims and provision of legal advice and support

• Negotiate and execute Indigenous Land Use Agreements and other statutory agreements and provide legal advice and support in relation to future Acts

288


Environmental Management program component

• Continue the existing Fisheries Project

• Continue to implement the Land Project

• Continue to implement a Garden and Horticulture Project

• Continue to Implement a Biodiversity Project

• Continue to implement an Invasive Species Project

• Continue and expand the Land and Sea Rangers Project

• Continue to implement a Climate Change / Coastal Erosion Project

• Strengthening cultural heritage

• Information sharing and research activities

Governance and Leadership program component

Continue to deliver:

• an Integrated Service Delivery Project

• a Governance and Leadership Capacity Building Project

• a Regional Communication Project

Healthy Communities program component

Healthy homes initiatives:

• Funding contributions towards community, market garden and horticulture initiatives in conjunction with the Environmental Management Program

• Engaging with food suppliers/retailers to explore improved healthy food options

Healthy lifestyles initiatives:

• Monitoring and provision of strategic policy direction for health, including advice to integrated service delivery health-related working groups

• Funding contributions towards health education initiatives in such areas as physical education, nutrition, obesity, diabetes programs, motivation, substance abuse and sport and recreation

• Funding contributions towards sport and recreation minor infrastructure

Improved housing and home ownership projects and initiatives:

• Funding contributions towards essential services and infrastructure to support healthy living environments

• Land tenure resolution through Indigenous Land Use Agreements and other formal agreements in conjunction with the Native Title and Environmental Management programs

289


Safe Communities program component

Social services initiatives:

• Developing a service map of social support services in the Torres Strait

• Funding contributions made to proactive and reactive social service providers supporting Torres Strait Islander and Aboriginal women, men and children

• Contributing to the development of standards for provision of services and facilities for safe and healthy communities through engagement with responsible agencies

Safe and accessible community initiatives:

• Contributing towards capacity building and training initiatives for social service providers, including emergency services

• Funding contributions to services and facilities that contribute to community accessibility and safety standards

• Monitoring and advocating for effective land and sea communications systems


• Number of CDEP participants who have moved into non-CDEP employment

• Number of Indigenous artists and cultural practitioners supported

• Number of native title determinations, negotiated and registered Indigenous Land Use Agreements, and number of future act notifications facilitated in the Torres Strait

• Number of communities participating in natural resource management activities

• Number of ranger groups in place to assist communities to carry out land, sea and cultural resource management activities

• Number of integrated service delivery meetings held

• Number of environmental health infrastructure projects completed

• Number of social support services active in the Torres Strait

• Number of people of all ages participating in organised healthy activities

290





3.1.1 Movement of administered funds between years The TSRA does not have any administered funds.

3.1.2 Special accounts The TSRA does not have any special accounts



Bill Total No. 1 approp.$'000 $'000 $'000 $'000


Outcome 1Departmental 2010–11 69,758 69,758 6,385 76,143 1 Departmental 2009–10 67,391 67,391 6,385 73,776 1 Total outcome 2010–11 69,758 69,758 - 6,385 76,143 - Total outcome 2009–10 67,391 67,391 - 6,385 73,776 -

Total departmental 2010–11 69,758 69,758 - 6,385 76,143 - Total departmental 2009–10 67,391 67,391 - 6,385 73,776 -

Total AGIE 2010–11 69,758 69,758 - 6,385 76,143 - Total AGIE 2009–10 67,391 67,391 - 6,385 73,776 -

Appropriations

291



3.2.1 Differences in agency resourcing and financial statements There are no differences in the Budget papers and TSRA’s PB Statements.

3.2.2 Analysis of budgeted financial statements Budgeted comprehensive income statement

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. A modest surplus of $609,000 is forecast for the 2010–11 fiscal year.

Budgeted departmental balance sheet

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets, liabilities and equity. TSRA’s budgeted balance sheet for the fiscal year ending June 2011 shows TSRA forecasting a total assets position $54.8 million and modest liabilities of $8.9 million, resulting in a net asset position of $44.2 million.

Budgeted departmental statement of cash flows

The budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the balance sheet and comprehensive income statement. The agency is forecasting a favourable cash position of $26.7 million for the fiscal year ending June 2011. The favourable cash position is due to the timing across fiscal years between receipt of income and program expenditure commitments.

292





2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 6,739 7,247 7,216 6,969 6,973Supplier expenses 8,621 8,650 8,600 8,506 8,506Grants 57,407 59,237 40,158 27,617 27,817Depreciation and amortisation 400 400 400 400 400Total expenses 73,167 75,534 56,374 43,492 43,696

LESS: OWN-SOURCE INCOMERevenueInterest 800 800 800 800 800Other 5,585 5,585 5,585 5,585 5,585Total revenue 6,385 6,385 6,385 6,385 6,385

Total own-source income 6,385 6,385 6,385 6,385 6,385

Net cost of (contribution by)services 66,782 69,149 49,989 37,107 37,311Revenue from government 67,391 69,758 50,598 37,716 37,920

Surplus (Deficit) 609 609 609 609 609

Surplus (Deficit) attributable to the Australian Government 609 609 609 609 609

Total comprehensive income attributable to theAustralian Government 609 609 609 609 609


293




$'000 $'000 $'000 $'000 $'000ASSETSFinancial assetsCash and equivalents 26,075 26,789 27,398 28,007 28,616Trade and other receivables 7,133 7,133 7,133 7,133 7,133Investments accounted for under the equity method - - - -Other investments - - - -Tax assets - - - -Other - - - -Total financial assets 33,208 33,922 34,531 35,140 35,749

Non-financial assetsLand and buildings 20,473 20,523 20,223 19,923 19,623Property, plant and equipment 431 331 631 931 1,231Other 41 41 41 41 41Total non-financial assets 20,945 20,895 20,895 20,895 20,895Total assets 54,153 54,817 55,426 56,035 56,644

LIABILITIESPayablesSuppliers 515 620 620 620 620Grants 7,976 7,876 7,876 7,876 7,876Dividends - - - -Other 477 477 477 477 477Total payables 8,968 8,973 8,973 8,973 8,973

ProvisionsEmployee provisions 1,569 1,619 1,619 1,619 1,619Total provisions 1,569 1,619 1,619 1,619 1,619


Net assets 43,616 44,225 44,834 45,443 46,052

----

-


294




$'000 $'000 $'000 $'000 $'000EQUITY*Parent entity interestContributed equity 32 32 32 32 32Reserves 9,047 9,047 9,047 9,047 9,047Retained surplus(accumulated deficit) 34,537 35,146 35,755 36,364 36,973Total parent entity interest 43,616 44,225 44,834 45,443 46,052

Total equity 43,616 44,225 44,834 45,443 46,052 * ‘Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.



reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2010Balance carried forward fromprevious period 34,537 9,047 - 32 43,616Adjusted opening balance 34,537 9,047 - 32 43,616

Surplus (deficit) for the period 609 - - - 609Total comprehensive incomerecognised directly in equity 609 - - - 609

Estimated closing balanceas at 30 June 2011 35,146 9,047 - 32 44,225 Prepared on Australian Accounting Standards basis.

295




2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash receivedAppropriations 67,391 69,758 50,598 37,716 37,920Interest 800 800 800 800 800Other 5,585 5,585 5,585 5,585 5,585Total cash received 73,776 76,143 56,983 44,101 44,305

Cash usedEmployees 6,739 7,197 7,216 6,969 6,973Suppliers 8,621 8,545 8,600 8,506 8,506Grants 57,407 59,337 40,158 27,617 27,817Total cash used 72,767 75,079 55,974 43,092 43,296Net cash fromoperating activities 1,009 1,064 1,009 1,009 1,009

INVESTING ACTIVITIESCash usedPurchase of property, plant and equipment 400 350 400 400 400Total cash used (400) (350) (400) (400) (400)Net cash from (used by) investing activities (400) (350) (400) (400) (400)

296


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)


2009–10 2010–11 2011–12 2012–13 2013–14$'000 $'000 $'000 $'000 $'000

Net increase (decrease)in cash held 609 714 609 609 609Cash and cash equivalents at thebeginning of the reporting period 25,466 26,075 26,789 27,398 28,007Cash and cash equivalents at the end of the reporting period 26,075 26,789 27,398 28,007 28,616 Prepared on Australian Accounting Standards basis.



$'000 $'000 $'000 $'000 $'000PURCHASE OF NON-FINANCIALASSETSFunded internally fromdepartmental resources

1400 350 400 400 400

TOTAL 400 350 400 400 400

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLETotal purchases 400 350 400 400 400Total cash used toacquire assets 400 350 400 400 400 1 Includes the following sources of funding: annual and prior year appropriations. Prepared on Australian Accounting Standards basis.

297


Table 3.2.6: Statement of asset movements (2010–11) Land Buildings Other

property, plant and

equipment

Heritage and

cultural assets

Total

$'000 $'000 $'000 $'000 $'000As at 1 July 2010Gross book value 7,365 13,108 856 41 21,370Accumulated depreciation/amortisation 425 425Opening net book balance 7,365 13,108 431 41 21,795

CAPITAL ASSET ADDITIONSEstimated expenditure onnew or replacement assetsBy purchase – appropriation equity - 350 - - 350Total additions - 350 - - 350

Other movementsDepreciation/amortisation expense - 300 100 - 400

As at 30 June 2011Gross book value 7,365 13,458 856 41 21,720Accumulated depreciation/amortisation 300 525 - 825Closing net book balance 7,365 13,158 331 41 20,895 Prepared on Australian Accounting Standards basis.

298


3.2.4 Notes to the financial statements Basis of accounting

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance and Deregulation.

Amounts in these statements are rounded to the nearest thousand dollars.

Departmental financial statements and schedule to administered activity

Under the Australian Government’s financial budget and reporting framework, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the government according to set government directions.

TSRA has no administered items.

Revenue from Government—ordinary annual appropriations

Revenue from Government represents amounts appropriated to fund the TSRA’s seven programs, actioned in order to deliver the agency’s stated outcome.

Expenses—depreciation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives, using in all cases the straight-line method of depreciation.

Asset valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Financial assets—cash

This includes notes and coins held and deposits at call.

299


Financial assets—receivables

This includes loans and advances made by the TSRA to clients in the delivery of its programs, in addition to amounts owing to the TSRA for delivery of goods and services. Loans receivable are measured at amortised cost using the effective interest method less impairment.

300

GLOSSARY

Accrual accounting System of accounting in which items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accumulated depreciation The aggregate depreciation recorded for a particular depreciating asset.

Additional Estimates Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Administered funds Usually, the funds or expenses an agency manages on behalf of the Government.

Administered items Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

Annual appropriation Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bill (No. 1) This Bill proposes spending from the CRF for the ordinary annual services of Government. Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 1).

301

Glossary

Appropriation Bill (No. 2) This Bill proposes spending from the CRF for purposes other than the ordinary annual services of Government. Under existing arrangements between the two Houses of Parliament (the ‘Compact’), this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 2).

Appropriation Bills (Nos. 3 and 4)

If an amount provided in Appropriation Acts (No. 1 or 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (Nos 3 and 4). However, they are also commonly referred to as the Additional Estimates Bills.

Assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Average staffing level The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

Commonwealth Authorities and Companies Act 1997

Sets out the financial management, accountability and audit obligations on Commonwealth statutory authorities and companies in which the Commonwealth has at least a direct controlling interest.

Consolidated Revenue Fund (CRF)

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

Cross Portfolio Budget Measure

A Budget measure that affects programs administered in a number of portfolios.

302

Glossary

Departmental items Resources (assets, liabilities, revenues and expenses) that agency Chief Executive Officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

Employment income Income that is earned, derived or received from remunerative work undertaken by an employee in an employer–employee relationship or through self-employment.

Equity or Net assets Residual interest in the assets of an entity after deduction of its liabilities.

Estimates An agency’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each output in the Budget, in consultation with the Department of Finance and Deregulation. (See also Forward Estimates and Additional Estimates).

Expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

Fair value The amount for which an asset could be exchanged or a liability settled between knowledgeable and willing parties in an arm’s length transaction.

Financial Management and Accountability Act 1997

The principal legislation governing the proper use and management of public money and public property, and other Commonwealth resources. FMA Regulations and FMA Orders are made pursuant to the Act.

Forward Estimates The financial statement estimate for the three out years after the budget year.

Grants Non-reciprocal transfers of economic resources, in which the payer agency does not receive approximately equal value in return.

303

Glossary

Key performance indicators

Qualitative and quantitative measures of an output that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

Measure A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

Mid Year Economic and Fiscal Outlook

Provides an update of the Government’s budget estimates by examining expenses and revenues year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the Government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

Operating result Equals revenue less expenses.

Outcome The intended result, consequence or impact of government actions on the Australian community.

Outcome statement Articulates the intended results, activities and target group of an Australian Government agency. An outcome statement serves three main purposes within the financial framework:

• to explain and control the purposes for which annual appropriations are approved by the Parliament for use by agencies

• to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds

• to measure and assess agency and program (non-financial) performance in contributing to government policy objectives.

Outputs The goods and services produced by agencies on behalf of Government for external organisations or individuals. Outputs also include goods and services for other areas of government external to the agency.

304

Glossary

Payment accuracy The FaHCSIA measure of the proportion of current year outlays paid accurately, for use in the financial statements and annual report. The base figure is calculated as the gross value of the fortnightly variation amounts (the amount payments are either increased or reduced by) divided by total fortnightly amounts paid to sampled customers subtracted from 100% to give payment accuracy. This figure is a point in time estimate, so it does not count mispayment for prior periods where the customer is paid accurately at the time of review, but includes all variations regardless of fault. The estimate is weighted by the size of the mispayment; for example, a $0.05 upward variation will not affect the total as much as a $450.00 cancellation.

Performance information Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.

Portfolio A Minister’s area of responsibility as a member of Cabinet. A portfolio consists of one or more Departments of State (Portfolio Departments) and agencies with similar general objectives and outcomes.

Price The amount the government or community pays for the delivery of agreed outputs.

Primary carer Defined by the Australian Bureau of Statistics (ABS cat no. 4430.0, p. 77) as a person who provides the most informal assistance, in terms of help or supervision, to a person with one or more disabilities. The assistance has to be ongoing, or likely to be ongoing, for at least six months and be provided for one or more of the core activities (communication, mobility and self care).

Program An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

305

Glossary

Receipts The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and Government Business Enterprise dividends received.

Revenue Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

Senate Legislation Committee

A body of Senators that examines the use of government funding. Its purpose is to question government officials about the estimates and activities of their respective agencies.

Special accounts Balances existing within the CRF that are supported by standing appropriations (FMA Act ss. 20 and 21). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (FMA Act, s. 20) or through an Act of Parliament (referred to in s. 21 of the FMA Act).

Special appropriation (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.

Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

306

ABBREVIATIONS

AACAP Army Aboriginal Community Assistance Program

ABA Aboriginals Benefit Account

AEIFRS Australian Equivalent of International Financial Reporting Standards

AGDRP Australian Government Disaster Recovery Payment

AGIE Australian Government Indigenous expenditure

AHL Aboriginal Hostels Limited

ALRA Aboriginal Land Rights (Northern Territory) Act 1976

CAC Act Commonwealth Authorities and Companies Act 1997

CALD culturally and linguistically diverse

CDEP Community Development Employment Projects

COAG Council of Australian Governments

CRF Consolidated Revenue Fund

CSA Child Support Agency

DEEWR Department of Education, Employment and Workplace Relations

DSP Disability Support Pension

EoCFW Employer of Choice For Women

EOWA Equal Opportunity for Women in the Workplace Agency

FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs

FMA Act Financial Management and Accountability Act 1997

FTB Family Tax Benefit

GFS Government Financial Statements

GGS General Government Sector

GSR Great Southern Rail

IBA Indigenous Business Australia

ILC Indigenous Land Corporation

NAHA National Affordable Housing Agreement

307

Abbreviations

NIEPAG The National Indigenous Economic Participation Advisory Group

NIPE National Indigenous Pastoral Enterprises Pty Ltd

NRAS National Rental Affordability Scheme

NTER Northern Territory Emergency Response

OfW Office for Women

OPA Official Public Account

PBC Prescribed Bodies Corporate

PPL Paid Parental Leave

RA Rent Assistance

SPP Special Purpose Payment

SSAT Social Security Appeals Tribunal

TSRA Torres Strait Regional Authority

308

INDEX

abbreviations, 307–8 Aboriginal Hostels Limited (AHL),

183–208, 4, 8 agency resource statement, 187–88 Australian Government Indigenous

expenditure, 199 balance sheet, 204 budget measures, 189 capital budget statement, 207 financial statements, 200–208 income statement, 203 Outcome 1—Aboriginal Hostels

Limited, 190–98 Program 1.1—Company owned and

operated hostels, 193–95 Program 1.2—Community operated

hostels, 196–98 statement of asset movements, 208 statement of cash flows, 206 statement of changes in equity, 205 strategic direction in 2010–11, 187

Aboriginal Land Commissioner, 5 acronyms, 307–8 agency resource statements

AHL, 187–88 EOWA, 165 FaHCSIA, 23–25 IBA, 215–17 ILC, 251 TSRA, 279–80

Australian Government Indigenous expenditure AHL, 199 FaHCSIA, 144–45 IBA, 233 ILC, 261 TSRA, 291

budget measures

AHL, 189 EOWA, 166 FaHCSIA, 26–36 IBA, 218 ILC, 251 TSRA, 281

Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), 13–158, 3, 7 administered assets and liabilities,

155 administered cash flows, 156 administered funds, movement

between years, 138 administered income and expenses,

154 agency resource statement, 23–25 Australian Government Indigenous

expenditure, 144–45 balance sheet, 149 budget measures, 26–36 capital budget statement, 152 financial statements, 146–56 income statement, 148 Outcome 1—Families and Children,

39–50 Outcome 2—Housing, 51–60 Outcome 3—Community Capability

and the Vulnerable, 61–79 Outcome 4—Seniors, 80–88 Outcome 5—Disability and Carers,

89–109 Outcome 6—Women, 110–15 Outcome 7—Indigenous, 116–37 Program 1.1—Family Support, 42–44 Program 1.2—Family Tax Benefit,

45–47 Program 1.3—Parental Payments

and Care Incentives, 48–50

309

Index

Program 2.1—Affordable Housing, 53–55

Program 2.2—Housing Assistance and Homelessness Prevention, 56–60

Program 3.1—Financial Management, 65–67

Program 3.2—Community Investment, 68–70

Program 3.3—Income Support for Vulnerable People, 71–73

Program 3.4—Support for People in Special Circumstances, 74–76

Program 3.5—Supplementary Payments and Support for Income Support Recipients, 77–79

Program 4.1—Income Support for Seniors, 83–85

Program 4.2—Allowances, Concessions and Services for Seniors, 86–88

Program 5.1—Targeted Community Care, 95–97

Program 5.2—Disability Support Pension, 98–100

Program 5.3—Income Support for Carers, 101–3

Program 5.4—Services and Support for People with Disability, 104–6

Program 5.5—Support for Carers, 107–9

Program 6.1—Gender Equality, 113–15

Program 7.1—Economic Development and Participation, 122–24

Program 7.2—Indigenous Housing and Infrastructure, 125–27

Program 7.3—Native Title and Land Rights, 128–30

Program 7.4—Indigenous Capability and Development, 131–33

Program 7.5—Closing the Gap in the Northern Territory, 134–37

special accounts, 140–43 statement of asset movements, 153 statement of cash flows, 151 statement of changes in equity, 150 strategic direction in 2010–11, 17–22

Equal Opportunity for Women in the Workplace Agency (EOWA), 159–81, 4, 8 agency resource statement, 165 balance sheet, 176 budget measures, 166 capital budget statement, 179 financial statements, 174–81 income statement, 175 Outcome 1—Equality of opportunity

in employment for women, 167–71 Program 1.1—Equality of

Opportunity in Employment for Women, 169–71

special accounts, 172–73 statement of asset movements, 180 statement of cash flows, 178 statement of changes in equity, 177 strategic direction in 2010–11, 163–64

Executive Director of Township Leasing, 5

financial statements. See also individual agencies AHL, 200–208 EOWA, 174–81 FaHCSIA, 146–56 IBA, 234–44 ILC, 262–72 TSRA, 292–300

glossary of terms, 301–6 Indigenous Business Australia (IBA),

209–44, 4, 8 agency resource statement, 215–17 Australian Government Indigenous

expenditure, 233 balance sheet, 237–38 budget measures, 218

310

Index

capital budget statement, 241 financial statements, 234–44 income statement, 236 Outcome 1, 219–32 Program 1.1—Equity and

Investments, 221–23 Program 1.2—Homes Ownership

Program, 224–26 Program 1.3—Business Development

and Assistance, 227–29 Program 1.4—Home Ownership on

Indigenous Land, 230–32 statement of asset movements, 242 statement of cash flows, 240 statement of changes in equity, 239 strategic direction in 2010–11, 213–14

Indigenous Land Corporation (ILC), 245–72, 4, 8 agency resource statement, 251 Australian Government Indigenous

expenditure, 261 balance sheet, 264–65 budget measures, 251 capital budget statement, 269 financial statements, 262–72 income statement, 263 Outcome 1, 253–59 Program 1—Acquisition and

management of an Indigenous land base, 256–59

statement of asset movements, 270 statement of cash flows, 266–67 statement of changes in equity, 268 strategic direction in 2010–11, 249–50

Northern Territory land councils, 5, 8 Outback Stores Limited, 6, 8 portfolio

Ministers and portfolio responsibilities, 3–8

overview, 1–9 resources, 9

Registrar of Indigenous Corporations, 5

Social Security Appeals Tribunal, 5, 8 special accounts

EOWA, 172–73 FaHCSIA, 140–43

Torres Strait Regional Authority (TSRA), 273–300, 4, 8 agency resource statement, 279–80 Australian Government Indigenous

expenditure, 291 balance sheet, 294–95 budget measures, 281 capital budget statement, 297 financial statements, 292–300 income statement, 293 Outcome 1, 282–90 Program 1.1—Torres Strait Regional

Development, 285–90 statement of asset movements, 298 statement of cash flows, 296–97 statement of changes in equity, 295 strategic direction in 2010–11, 277

Wreck Bay Aboriginal Community Council, 6, 8

311

portfolio budget statements 2010–11 budget related … · portfolio budget statements 2010–11...

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